NEW DELHI (Reuters) - Gold futures rose on Thursday in line with global prices that jumped 2 percent as bargain hunters emerged to make the most of lower prices.
At 3.49 PM, the most-active gold for February delivery was up 1.41 percent at 28,816 rupees per 10 grams on the Multi Commodity Exchange.
Silver for March delivery jumped 2.6 percent to 45,029 rupees per kg.
International gold rose to as high as $1,227.75 an ounce as bargain hunters resurfaced after prices plunged to a six-month low. It had dropped to $1,184.50 an ounce on Tuesday, its weakest since June 28.
"Mixed U.S. economic (data) and firmness in other commodities has lent support to price," analysts at Kotak Commodity Services wrote in a note. "However, weighing on price is the firmness in the U.S. dollar amid Fed's decision to reduce stimulus."
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The partially convertible rupee, which plays a key role in determining the landed cost of the dollar-quoted metal, inched lower as a large petrochemical company bought dollars, dealers said.
Indian gold imports may fall 70 percent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half the usual levels at 500-550 tonnes next year if new import rules are maintained, a top trade body official said.
To curb a rising trade gap, India slapped a record import duty of 10 percent on gold earlier this year and tied imports for domestic consumption with exports. Finance Minister P. Chidambaram told news channel CNBC TV18 on Monday "restraining gold imports is a good move" and that India should look to mine gold within the country to reduce its dependence on imports.
(Reporting by Krishna N Das; Editing by Sunil Nair)
