MUMBAI: Gold futures in India fell more than half a percent, weighed by a stronger rupee and weak overseas leads, though premiums in the domestic market stayed on the higher side due to a lack of stocks.
At 1105 GMT, the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.48 percent lower at 30,090 rupees per 10 grams, after falling to a low of 30,055 rupees earlier in the session.
Silver for December delivery on the MCX was 1.3 percent lower at 43,699 rupees per kg.
In the domestic market, premiums stayed at about $125 an ounce on London prices, due to limited supplies after the new 80/20 import rule.
"Demand is less than 20-25 percent compared to last year. There is a supply problem and premium is hovering around $120-125 an ounce. I don't think there will be an improvement in this situation until rules are relaxed," said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.
To ease its trade deficit, India has made it more expensive to bring in gold, the biggest non-essential import item, by setting the import duty at a record high 10 percent.
It has also tied the quantity of imports to exports, making it necessary for importing agencies to fulfil export orders before sending any bullion for local consumption.
The World Gold Council (WGC) cut its forecast for Indian gold demand earlier this month to 900 tonnes from the earlier 1,000 tonnes, predicting that the country could also lose its place as the world's biggest consumer of bullion to China.
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