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Gold futures ease from two-month high

by FP Staff  Jun 13, 2013 04:30 IST

MUMBAI (Reuters) - Indian gold futures eased from their highest level in nearly two months weighed by a reversal in the rupee, which hit a record low in the previous session.

* The actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.49 percent lower at 27,754 rupees per 10 grams, falling from a Tuesday high of 28,288 rupees, a level last seen on April 13.

* The rupee was stronger tracking gains in most other Asian currencies. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* In the domestic physical market, demand remained subdued and importers and wholesalers struggled to vacate supplies from May, when imports were almost double of a month's average.

* The government does not need to act as of now to further moderate gold imports as the recent steps have already had a considerable impact, a government official said.

* "Retail demand is totally absent...," said Daman Prakash Rathod, director of MNC Bullion, a wholesaler in Chennai, adding that the supplies are enough to meet a week's demand in case of a sharp fall in prices.

* The government raised the import duty on gold to 8 percent after a ban on consignment imports by banks, state-run agencies and premier trading houses. The festival and wedding season has ended and will re-start in August.

* Silver for July delivery on the MCX was 0.30 percent lower at 43,480 rupees per kilogram.

(Reporting by Siddesh Mayenkar; Editing by Supriya Kurane)

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