Gold futures jumped more than 2.5 percent on Tuesday as continued weakness in the rupee made the dollar-quoted yellow metal expensive,while importers remained on the sidelines as they awaited fresh guidelines from the federal government.
At 0940 GMT,the most-active gold contract for October delivery on the Multi Commodity Exchange (MCX) was 2.01 percent higher at 33,730 rupees ($510) per 10 grams. The contract had struck a peak of 35,074 rupees last week.
Indian rupee,which extended losses to near a record low,plays an important role in determining the landed cost of the dollar-quoted yellow metal.
In the physical market,gold traders awaited operational guidelines from the customs department,after a five week halt in shipments,which drove premiums higher.
“There is no demand from anywhere and imports are zero,” said Haresh Acharya,head of bullion desk,Parker Bullion in Ahmedabad.
Silver contract for September delivery on the MCX was 2.46 percent higher at 56,305 rupees per kg.
The following were the prices of gold and silver in rupees as of 1315 local time in the spot market,quoted by HDFC Bank.