MUMBAI, Oct 21 (Reuters) - Gold importers in India, the world’s biggest buyer of the metal, struggled to get supplies on Monday, paying record premiums just ahead of the peak festival season next month.
* India celebrates Dhanteras on Nov. 1, the biggest gold buying festival, when consumers buy the yellow metal to invoke prosperity.
* “We are processing orders for exports... the 100 percent export orders need to be cleared first, only after that we will get imports under the 80/20 rule,” said a dealer with a private bank importing bullion.
* Gold imports for domestic consumption are now tied to exports under the new 80/20 rule, as an embattled government tries to curb a record trade deficit.
* “Given (sales) performance (from India) over the last several weeks, the outlook for physical gold buying doesn’t seem very promising,” said UBS in its daily note to clients.
* The absence of pent up demand from India is discouraging for gold, diminishing the potential price lift due to seasonal appetite, said the UBS.
* The actively traded gold for December delivery on the Multi Commodity Exchange (MCX) was 0.71 percent higher at 29,688 rupees ($480) per 10 grams.
* The most-active silver for December delivery was 1.35 percent higher at 48,844 rupees per kg.
* The following were the prices of gold and silver in rupees as of 1600 local time in the spot market, quoted by Corporation Bank:
Gold .999/10 grams 27,212 27,208
Silver .999/kg 46,398 45,944
$1 = 61.2450 Indian rupees Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi