Gold up on rupee; physical market muted

 Gold futures edged higher on Monday, after the rupee hit a record low, while physical trading remained muted due to seasonal slackness amid lack of supplies after a ban on consignment imports.  At 0833 GMT, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.11 percent higher at 27,609 rupees per 10 grams.  The Indian rupee hit a record low, escalating worries about the country's current account deficit and complicating the task of the central bank as it tries to loosen monetary conditions to spur an economic recovery.  The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. Real time Commodity Technical Analysis Software Charting Software

 However, weakness in global gold kept the gains in check.  "Nobody has stocks, people are not importing and there is no demand due to rains," said Ketan Shroff, director with Penta Gold, a wholesaler in Mumbai.  The Indian government raised the import duty on gold to 8 percent, after a ban on consignment imports by banks, state-run and premier trading houses.  India's festival and wedding season has ended and will re-start in August. Silver for July delivery on the MCX was 0.47 percent lower at 42,790 rupees per kilogram.

Source : Economic Times