Importers continue to stock up gold for weddings

The wedding season in India, the world's biggest buyer of the metal, is slated to start later this week and will continue until May.

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Festivals also take place during this period.

The federal government has hinted at further increasing the import duty on gold from the current 4 per cent.

"Good number of deals are happening today as rupee has appreciated. . . there was no buying or enquiries yesterday," said a dealer with a state-run bullion importing bank in Mumbai.

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The most-active gold for February delivery on the multi commodity exchange was 0.55 per cent lower at 30,723 rupees per 10 grams at 0919 GMT, weighed by a stronger rupee.

The rupee rose on Thursday after the country's oil minister said the government would allow oil marketing companies to set diesel prices.

The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.

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In the overseas market, gold traded steady as investors, concerned about the duration of ultra-loose monetary policy, refrained from betting big.

Silver for March delivery on the MCX was 0.83 per cent lower at 59,221 rupees per kg, easing from the previous day's one-month high of 59,787 rupees, a level last seen on December 20.

(Editing by Jijo Jacob)