Gold price rises to one-week high, premiums ease
Mumbai: Gold futures in India rose to their highest level in a week, in line with overseas markets, though a stronger rupee kept the upside limited and premiums eased a tad in the physical market ahead of a harvest festival.
The actively-traded gold for February delivery on the Multi Commodity Exchange (MCX) was 0.16 percent higher at Rs 29,079 per 10 grams, after hitting a high of Rs 29,045, a level last seen on January 6.
Silver for March delivery on the MCX was 0.31 percent lower at Rs 44,686 per kg.
Global gold extended gains to a third session to hit its highest in a month after a surprisingly weak U.S. jobs report stoked expectations that the Federal Reserve could temper the pace of its stimulus wind-down.
The rupee, which hit its highest level in a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Premiums were at USD 120 an ounce on London prices as against USD 130 an ounce last week, said Bachhraj Bamalwa, director of the All India Gems and Jewellery Trade Federation, an umbrella body of more than 300,000 jewellers.
"Premiums have come down a bit as there is no demand," said Bamalwa.
Indian gold imports may have fallen 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 in 2014 if new import rules are maintained, a top trade body official said.
To curb a rising trade gap, the Indian government slapped a record import duty of 10 percent and tied imports for domestic consumption with exports.