| Gold futures fall on global leads, firm rupee | | | Mumbai: Gold futures fell on Tuesday in line with overseas markets and on a firm rupee, with traders getting some respite after Finance Minister P Chidambaram suggested a hike in import duty on the yellow metal was unlikely.
The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was Rs. 130 lower at Rs. 29,897 per 10 grams on a firm rupee.
Overseas gold held below $1,600 an ounce on Tuesday as a slightly brighter-than-expected reading of euro zone manufacturing activity lifted stock markets, diverting interest from bullion.
The rupee edged higher in range-bound trade in its first trading day of the new fiscal year, helped by bunched-up inflows, but a record current account deficit weighed on the currency's fortunes.
India, the world's biggest buyer of gold, has been trying to curb imports to put a lid on the record-high current account deficit. The government raised the import duty on gold by 50 per cent to 6 per cent in January.
The Finance Minister suggested on Tuesday that the government is unlikely to raise the import tax on gold further to avoid gold smuggling.
"It's a temporary relief, the government has to now think about reducing duties," said Kumar Jain, vice chairman of Mumbai Jewellers Association.
Silver for May delivery on the MCX was 0.39 per cent lower at Rs. 52,522 per kg. |
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