Gold futures inch up as rupee weakens

Reuters
An employee shows gold bangles to a customer at a jewellery showroom in Mumbai November 1, 2013. REUTERS/Danish Siddiqui/Files
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An employee shows gold bangles to a customer at a jewellery showroom in Mumbai November 1, 2013. REUTERS/Danish Siddiqui/Files

NEW DELHI (Reuters) - Gold futures rose slightly on Thursday as the rupee depreciated against the dollar. The most-active gold for February delivery was up 0.27 percent at 28,529 rupees per 10 gram at 3:57 p.m. on the Multi Commodity Exchange.

* Silver for March delivery was up 0.37 percent at 44,150 rupees per kg.

* "Dip buying and choppiness in the U.S. dollar has lent some support to gold price," Kotak Commodity Services analysts wrote in a note.

* International gold was nearly flat.

* The partially convertible rupee, which plays a key role in determining the landed cost of the dollar-quoted yellow metal, fell tracking losses in other Asian currencies.

* Gold imports may fall 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 next year 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 earlier this year and tied imports for domestic consumption with exports.

(Reporting by Krishna N Das; Editing by Sunil Nair)

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