MUMBAI: Gold prices in the country eased on Thursday due to a rise in the rupee while demand remained sluggish as importers awaited government clarification on some operational issues amid a muted jewellery market.
In a bid to reduce a record current account deficit, the Reserve bank of India has tied gold imports for domestic use to export volumes. The government raised the import tax on gold twice during 2013 to 8 per cent.
"There is no clarity on import guidelines. The price is not attractive for traders for making purchases, nor is there any great demand from jewellers," said an Ahmedabad based dealer, who declined to be named.
Premiums stayed around $32 an ounce over London prices due to the supply crunch, the dealer said.
The current circular is not clear on various operational matters like monitoring, on which clarifications have been sought, importers said.
At 0934 GMT, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.23 per cent lower at Rs 27,612 ($450) per 10 gram, as the rupee rose against the dollar.
The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Silver for September delivery on the MCX was 0.28 per cent higher at Rs 41,635 per kg.
