Indian gold and silver futures slipped early on Monday with a drop in world prices, while soy contracts fell on sluggish demand, brokers said. Sugar eased on increased selling, with the April contract nearing settlement, they said. At 0712 GMT, June gold at the Multi Commodity Exchange (MCX) was quoted at 6,152 rupees ($140) per 10 grams, down 3 rupees, in volume of 65.7 kg. August fell 5 rupees to 6,192 rupees. May gold at the National Commodities and Derivatives Exchange (NCDEX) dropped 3 rupees to 6,173 rupees.
"Indian bullion futures are reflecting global prices which fell in early hours, but a rise in physical demand in India is preventing a corresponding drop," said a bullion broker based in the southern city of Madras.
Generally a $1 drop in world prices results in a fall of 16 rupees per 10 grams in domestic futures, but the decline this month has been just 12 rupees, he said.
Spot gold fell to $423.55/$424.25 an ounce in early Asian trade from New York's last quotes of $424.60/$425.40 on Friday. Silver was down at $6.94/$6.97 from $6.99/$7.02.
Physical demand of gold and silver in India has been good in the current wedding season, which sees a spurt in buying of gold and silver ornaments, traders said. Jewellery accounts for 85 percent of India's annual gold needs of 700 to 800 tonnes.
May silver at the MCX declined to 10,569 rupees a kg from 10,620 rupees in volume of 87.42 tonnes. NCDEX's May fell 43 rupees to 10,624 rupees, with 27.9 tonnes changing hands.
Soy futures eased on a drop in Malaysian palm futures.
MCX's May refined soyoil fell 0.43 percent to 391 rupees per 10 kg, while June slipped 0.46 percent to 393.80 rupees. NCDEX's May was down 0.48 percent to 390.90 rupees.
Malaysian palm oil futures were down in thin volume at midday after tracking fresh losses in rival US soyoil.
At the lunch break, Bursa Malaysia Derivatives' new benchmark third-month palm oil contract, July, was down 3 ringgit at 1,424 ringgit ($374.74) a tonne.
May soyoil on the Chicago Board of Trade was down 0.16 cent at 22.48 cents per lb by 0530 GMT in Monday's electronic trade, after closing up 0.22 cent on Friday.
NCDEX's April sugar fell 14 rupees to 1,781 rupees per 100 kg.
"There is no change in fundamentals but many people are selling as the contract maturity period is coming nearer," said a sugar broker.