MUMBAI Indian gold futures surged more than 3 percent on Thursday to their highest level in nearly two years, tracking gains in the overseas market and the rupee's depreciation.
At 1114 GMT, the most active April contract was trading up 3.3 percent at 29,251 rupees (about $428) per 10 grams, after rising to 29,290 rupees earlier, the highest level since March 24, 2014.
The price rise has dampened physical demand in the world's second biggest consumer of the bullion, jewellers said.
In the overseas market, gold surged to its highest in 8-1/2 months as investors bet that the Federal Reserve could find it hard to hike U.S. interest rates this year, while safe-haven demand amid a tumble in equities and the dollar also boosted the metal.
($1 = 68.3125 Indian rupees)
(Reporting by Rajendra Jadhav; Editing by Biju Dwarakanath)
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Updated Date: Feb 12, 2016 01:45:14 IST