MUMBAI: Gold futures traded in the vicinity of their highest level in eight months on Wednesday due to a weaker rupee, while demand remained subdued ahead of the resumption of imports.
The actively traded Gold for October delivery on the Multi Commodity Exchange (MCX) was 0.15 per cent lower at Rs 30,765 ($480) per 10 gram. It touched a high of 31,225 rupees intraday, near an eight-month high hit on August 19.
The rupee, which hit a record low again on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
In the overseas market, gold traders awaited more clarity from the US Federal Reserve on whether it would begin curbing its commodities-friendly economic stimulus from next month.
"India remains largely absent in the physical market amid tighter regulations and a weak currency," UBS said in a report to its clients.
Indian traders said they will start importing gold again over the next week or so after the RBI clarified a new rule that brought the flow of the precious metal into the world's top gold consumer to a standstill at the end of July.
The most-active silver for September delivery on the MCX was 0.33 per cent lower at Rs 50,291 per kg.
