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Gold futures fall on stronger rupee, global cues
December 31, 2013 / 11:19 AM / 4 years ago

Gold futures fall on stronger rupee, global cues

NEW DELHI (Reuters) - Indian gold futures edged lower in thin volume on Tuesday as the rupee appreciated against the dollar and global prices headed for their biggest annual decline in more than three decades.

Employees wait for customers inside a gold jewellery showroom in New Delhi August 13, 2013. REUTERS/Anindito Mukherjee/Files

At 4.40 pm, the most-active gold for February delivery was down 0.09 percent at 28,334 rupees per 10 grams on the Multi Commodity Exchange.

Silver for March delivery fell 0.42 percent to 44,018 rupees per kg.

International gold staged a modest rebound after falling more than 1 percent in the previous session.

The partially convertible rupee, which plays a key role in determining the landed cost of the dollar-quoted metal, inched up tracking gains in local stocks.

“Gold may continue to trade lower Tuesday as downbeat sentiments prevail,” Kotak Commodity Services analysts wrote in a note. “Lower trade volumes may result in choppiness.”

Indian gold imports may fall 70 percent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half the usual levels at 500-550 tonnes next year if new import rules are maintained, a top trade body official said.

To curb a rising trade gap, India slapped a record import duty of 10 percent on gold earlier this year and tied imports for domestic consumption with exports. Finance Minister P. Chidambaram told news channel CNBC TV18 on Monday “restraining gold imports is a good move”.

Reporting by Krishna N Das; Editing by Sunil Nair

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