Gold futures extend losses, near two-week low
Mumbai: Indian gold futures extended losses on Friday to hit their lowest level in nearly two weeks weighed by weak overseas leads, though physical traders awaited resumption of shipments.
The actively traded gold for October delivery on the Multi Commodity Exchange (MCX) was 1.7 percent lower at 31,670 rupees per 10 grams, after hitting a low of 31,613 rupees.
A weak rupee, however, limited the fall. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
In the overseas market, gold held near a 2-week low and was headed for its second week of losses on growing expectations the US Federal Reserve would soon wind down its commodities-friendly bond-buying programme.
"The (physical) market is very quiet, we are expecting that a couple of consignments will get cleared next week," said Haresh Soni, chairman, All India Gems and Jewellery Trade Federation.
India's central bank, in a bid to help the government stem the tide of gold imports which had pushed the current account deficit to a record high, told importers on July 22 that a fifth of their purchases would have to be turned around for export.
Most of the jewellers are sustaining on stocks that were shipped from April to May, which totalled more than 300 tonnes.