Indian gold
futures edged higher on Monday tracking gains in the overseas market,
while demand in local spot markets remained subdued as prices were
hovering above 26,000 rupees per 10 grams.
The actively traded gold for June delivery on the Multi Commodity
Exchange (MCX) was 0.07 percent higher at 26,424 rupees per 10 grams.
Jewellers are not active. Retail demand is weak. The wedding season is
coming to an end. There is no major festival in the next two months,"
said a Mumbai-based dealer with a private bullion importing bank.
"Gold supplies are comfortable in the local market. There is no shortage
like we saw earlier this month, but buyers are not comfortable with
making purchases above 26,000 rupees," the dealer said.
The Reserve Bank of India 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 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.
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