MUMBAI (Reuters) - Indian gold futures eased on Tuesday following losses in overseas markets but demand remained weak as buyers were on the sidelines, hoping for a bigger drop.
The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 0.69 percent lower at 26,263 rupees per 10 grams at 3.26 p.m.
"Retail demand is slowing down. Many potential buyers made purchases earlier this month. Now we are heading towards the lean demand season," said a Mumbai-based jeweller.
"Unless we see sharp fall in prices, say by four or five percent, demand will remain subdued."
The Reserve Bank of India (RBI) restricted banks from consignment imports of gold, except for jewellery exporters, after imports jumped more than 150 percent in April, despite a 50 percent hike in import duty in January.
The RBI said on Monday banks would not be allowed to give loans against units of gold exchange-traded funds (ETFs) and gold mutual funds.
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The rupee, which is trading near its lowest level in more than eight months, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Silver for July delivery on the MCX was 0.95 percent down at 43,195 rupees per kilogram.
(Reporting by Rajendra Jadhav; Editing by Jijo Jacob)