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Gold futures reverse from one-week low

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Reuters MUMBAI
Last Updated : Nov 19 2013 | 4:10 PM IST

MUMBAI (Reuters) - Gold futures reversed from their lowest level in a week on Tuesday, helped by overseas markets, though a stronger rupee kept the upside limited.

* At 3:20 p.m., the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.11 percent higher at 30,084 rupees per 10 grams, after hitting a low of 29,954 rupees, a level last seen on November 13.

* The rupee, which gained past 62 to a dollar to a near 2-week high, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* The physical market witnessed lack of activity as exporters were given priority in shipments under the new rule.

* India has imposed supply restrictions on gold, the biggest non-essential import item, by linking domestic consumption to exports to curb a record trade deficit. The federal government has also hiked the import duty to a record 10 percent.

* "We have to understand that it will be slow process of consignments for both exports as well as domestic consumption. We are in the process of giving the export performance to the customs," said a dealer with a private bullion importing bank.

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* The wedding season is underway in India, and will continue till January. Demand for the yellow metal is high during this period as gold is often gifted by the parents to the bride as an endowment.

* Silver for December delivery on the MCX was 0.17 percent lower at 45,260 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

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First Published: Nov 19 2013 | 3:59 PM IST

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