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Gold futures fall to near four-week low

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Reuters MUMBAI
Last Updated : Jun 25 2013 | 4:05 PM IST

MUMBAI (Reuters) - Gold futures in India, the world's biggest buyer of the metal, extended losses to their lowest level in nearly four weeks, in line with global markets.

* At 3:57 p.m, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.27 percent lower at 26,654 rupees per 10 grams, after hitting a low of 26,541 rupees, a level last seen on May 29.

* Global gold reversed early gains as worries persisted over an early end to U.S. monetary stimulus measures and a cash crunch in China, bringing the metal's losses to more than 8 percent since the start of last week.

* A slightly firmer rupee also weighed on prices. The rupee plays an important role in determining the landed cost of gold.

* "Demand has slowed... people are waiting for the price level of 26,000 rupees (per 10 grams)," said SK Jain, president of Chandani Chowk Jewellers Association.

* India imposed a ban on consignment imports in May, but has ruled out a blanket ban on gold imports or any increase in customs duty from the current 8 percent.

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* India's biggest trade body representing jewellers urged sellers to stop selling gold coins and bars, a few days after Reliance Capital suspended its gold sales.

* Gold imports into India fell from an average of $135 million per day in the first half of May to $36 million in the second half, Finance Minister P. Chidambaram said.

* Silver for July delivery on the MCX was 0.11 percent lower at 40,788 rupees per kilogram.

(Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi)

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First Published: Jun 25 2013 | 3:58 PM IST

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