Gold steady near eight-month high on weak rupee

Gold futures in India traded in the vicinity of their highest level in eight months on Wednesday due to a weaker rupee, while demand remained subdued ahead of the resumption of imports.

 

* The actively traded gold for October delivery on the Multi Commodity Exchange (MCX) was 0.15% lower at Rs 30,765  per 10 gram. It touched a high of Rs 31,225  intraday, near an eight-month high hit on August 19.

 

* The rupee, which hit a record low again on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

 

* In the overseas market, gold traders awaited more clarity from the US Federal Reserve on whether it would begin curbing its commodities-friendly economic stimulus from next month.

 

* "India remains largely absent in the physical market amid tighter regulations and a weak currency," UBS said in a report to its clients.

 

* Indian traders said they will start importing gold again over the next week or so after the central bank clarified a new rule that brought the flow of the precious metal into the world's top gold consumer to a standstill at the end of July.

 

* The most-active silver for September delivery on the MCX was 0.33% lower at Rs 50,291  per kg