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Gold futures ease on weak global cues, rupee gains

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Reuters NEW DELHI
Last Updated : Sep 18 2013 | 4:36 PM IST

NEW DELHI (Reuters) - Gold futures eased on Wednesday, a day after gaining more than 1 percent, tracking weak global cues and gains in the local currency.

* At 1456 IST, the actively traded gold for October delivery on the Multi Commodity Exchange (MCX) was 0.93 percent lower at 29,446 rupees per 10 grams from its previous close.

* Overseas gold fell more than 1 percent to trade below $1,300 an ounce, with investors expecting the U.S. Federal Reserve to announce a reduction in its bullion-friendly stimulus measures later on Wednesday.

* The rupee notched up gains and was trading at 63.15/16 versus its Tuesday's close of 63.37/38, tracking losses in the dollar versus most other Asian currencies, making the dollar-quoted asset less expensive.

* Domestic buying remained subdued despite the approaching peak festival and wedding season.

* "We expect the demand to pick up around mid-October," said a gold dealer with a private bank, who did not wish to be identified.

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* India increased the import duty on gold jewellery to 15 percent from 10 percent on Tuesday, in a move aimed more at protecting the domestic jewellery industry rather than stemming overseas purchases to narrow its current account deficit.

* "Gold jewellery is not even 5 percent of the country's total imports, so we don't see any major impact," the dealer said.

* Silver for December delivery on the MCX was 0.79 percent lower at 49,017 rupees per kg.

(Reporting by Malini Menon; Editing by Anupama Dwivedi)

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First Published: Sep 18 2013 | 4:32 PM IST

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