FE:India stops buying gold even as prices hit 9-month high
Gold demand in India remained subdued on Thursday due to non-availability of the yellow metal, even as prices hit their highest level in nearly nine months.
India may re-start imports by as early as next week or so after the central bank 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.
"It has been exactly a month since we last imported ... there are no stocks in the market," said Haresh Acharya, head of bullion desk, Parker Bullion.
At 0911 GMT, the actively traded contract for October delivery on the Multi Commodity Exchange (MCX) was 0.22 percent lower at 31,513 rupees ($490) per 10 grams, easing from a high of 31,595 rupees hit earlier in the day, a level last seen on November 29, 2012.
In the overseas market, gold fell for a second session after minutes from a Federal Reserve policy meeting failed to ease fears the US central bank would begin tapering its economic stimulus from next month.
However, a weaker Indian rupee limited the downside in prices. The rupee plays an important role in determining the landed cost of the dollar-denominated yellow metal.
Silver contract for September delivery on the MCX was 0.18 percent lower at 51,351 rupees per kg.
