Gold futures fall to three-week low

Gold futures fall to three-week low

Gold futures fall to three-week low

Gold futures in India, the world's biggest buyer of the metal, extended losses to their lowest level in three weeks, though physical sales remained lacklustre as seasonally dull demand weighed.

* At 4 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 1 percent lower at 26,759 rupees per 10 grams, after hitting a low of 26,650 rupees, a level last seen on May 30.

* Global gold fell over 1 percent, extending last week's 7 percent decline, hurt by a stronger dollar amid worries over an early end to the U.S. Federal Reserve's stimulus programme.

* A weaker rupee kept the downside in prices limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "There are no supplies in the market, we are facing difficulty... our sales have declined by 75 percent," said Harshad Ajmera, proprietor of JJ Gold House, a wholesaler in the eastern city of Kolkata.

* India imposed a ban on consignment imports in May, but has ruled out a blanket ban on gold imports or any increase in customs duty from the current 8 percent.

* On Friday, Reliance abruptly halted gold sales and investments in its gold-backed funds.

* Gold imports into India fell from an average of $135 million per day in the first half of May to $36 million in the second half, Finance Minister P. Chidambaram said.

* Silver for July delivery on the MCX was 1.65 percent lower at 40,914 rupees per kilogram.