Gold importers in India waited for a bigger fall in prices that ruled steady following a similar trend in overseas market, while a weaker rupee limited the downside in prices. After a 50 percent import duty increase to 6 percent on January 21, the Reserve Bank of India recommended putting curbs on imports, along with launching gold-linked products to limit shipments. The wedding and festival season is currently on in India, the world's biggest buyer of the metal.
The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.03 percent lower at 30,544 rupees per 10 grams. The rupee, which weakened on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal. Overseas gold regained some strength as recent losses started to ignite buying interest from jewellers in Asia after the Lunar New Year break, but firmer equities could limit gains.
"Market is very dull as it is running at a disparity of 100 rupees (per 10 grams). If there is a good healthy correction to 30,000, then people may come in to buy," said Ketan Shroff, director of Penta Gold, a wholesaler in Mumbai. India's 2012 gold imports fell 11.25 percent to 860 tonnes, making it the world's top most consumer followed by China. Silver for March delivery on the MCX was 0.09 percent lower at 57,391 rupees per kg.