Gold futures rebound from two-month low, Rs. 28,770 per 10 gram

Mumbai – Gold futures rebounded on Wednesday from their two-month low hit in the previous session, though premiums remained high due to lack of stocks in the domestic market.

At 0948 GMT, the most-active gold for February delivery on the Multi Commodity Exchange was 0.32 per cent higher at Rs. 28,770 per 10 gram. It had hit a low of Rs. 28,642 on Tuesday, a level last seen on October 15.

Silver for March delivery was 0.82 per cent higher at Rs. 45,800 per kg.

“The market is slow as there is no gold available. We are hearing MMTC may give some gold at $125 per tonne,” said Suresh Jain, the proprietor of SJ Jain Jewellers, a wholesaler in Mumbai.

Premiums hit a record of $150-$160 earlier this month.

Gold imports may fall 70 per cent 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, said a top trade body official.

The government slapped a record import duty of 10 per cent, and tied imports for domestic consumption with exports, but with easing trade gap, the central bank said it would be premature to withdraw curbs on imports.