August gold futures prices on MCX, that reflects the spot rate 1% excluding VAT, traded down three-fifths of a percent by point for Rs 28,325 per 10 gm at noon Friday as speculators offloaded positions to book profits. Gold had climbed to a four-month high yesterday after India maintains import duties on precious metal untouched in 10% and the U.S. Fed was kept quiet about an increase in the interest rate probably in the liberation of its minutes for June recently.
MCX futures had granted a tax cut of 2% and rose to record four months of Rs 28,589 after this did not materialize in the FY15 budget. Yet, prices are fixed on Friday due to lack of demand for the metal from consumers. Gold is expected to trade in a wide array of Rs 28.000 to 28.500 in the next short break term.
While, retracing overnight gains made on concerns about southern European banks. Comex Gold futures for August delivery traded at $1,337.40 a troy ounce, down 0.13%, after hitting an overnight session low of $1,325.40 and off a high of $1,346.10.
The Government will address relaxing restrictions on the import of gold after the fiscal situation becomes more comfortable, said Finance Minister Arun Jaitley.
“Not at the moment (to ease restrictions on imports of gold) … if our situation gives me more comfort level is of course accommodative policies. They are not etched in stone that may not be exchanged,” said a interview to PTI.
He, however, said the government needs to be careful in the current account deficit and the fiscal deficit.
“Both in CAD (current account deficit) and the fiscal deficit, I think we have to be cautious and careful,” he said.