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Gold price steady, hovers below Rs 29,000 level in futures trade

Last Updated: Friday, January 17, 2014 - 20:32

Mumbai: Gold futures in India were almost steady with a negative bias on Friday, in line with overseas leads and a stronger rupee.

The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was lower 0.12 percent at Rs 28,999 per 10 grams at 1104 GMT.

Silver for March delivery on the MCX was 0.06 percent higher at Rs 44,570 per kg.

Global gold was holding steady, but was headed for its first weekly drop in four weeks as a string of U.S. data showed more strength in the recovery of the world`s largest economy, dimming the metal`s safe-haven appeal.

The rupee, which traded stronger on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Premiums stayed steady at USD 120 an ounce on London prices amid weak demand, said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.

Gold imports may have fallen 70 percent in the final quarter of 2013 from 255 tonnes in the year-ago period. They are expected to be half the usual levels at 500-550 tonnes in 2014 if new import rules are maintained.

To curb a rising trade gap, the government slapped a record import duty of 10 percent and tied imports for domestic consumption with exports.

First Published: Friday, January 17, 2014 - 20:30
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