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    Indian imports, affected by a July 22 RBI notification stipulating that at least 20 per cent of the yellow metal brought into the country should be re-exported, are likely to resume anytime now.
    Indian imports, affected by a July 22 RBI notification stipulating that at least 20 per cent of the yellow metal brought into the country should be re-exported, are likely to resume anytime now.
     
    Gold prices on the domestic spot and futures market are likely to look up a little on hopes that buying in China and India may increase. However, uncertainty over the US Federal Reserve’s move on the $85-billion-a-month stimulus package is proving to be a market dampener.
    Indian imports, affected by a July 22 RBI notification stipulating that at least 20 per cent of the yellow metal brought into the country should be re-exported, are likely to resume anytime now. With kharif harvest beginning and festivals ahead, rural consumers could begin buying gold.
    On the other hand, buying in China is seen up ahead of holidays starting October 1. Gold purchases in Shanghai exchange increased on Monday.
    But holdings of gold in electronic form in exchange-traded funds dropped. On Monday, SPDR Trust, world’s largest gold exchange traded fund, reported that its holdings dropped below 910 tonnes to 909.59 tonnes.
    Data on Germany business climate, US Consumer confidence, US chain store sales and housing index could have some influence on the precious metals market later in the day. In India, any rise in the rupee’s value against the dollar will make imports of gold, crude oil and vegetable oils cheaper.


    Spot gold, gold futures
    In early Asian trade, spot gold rose to $1,326.63 an ounce and gold futures maturing in December at $1,326.60.
    In Mumbai bullion market, gold for jewellery (99.5% purity) dropped to Rs 29,790 and pure gold (99.9% purity) to Rs 29,935.
    On MCX, gold October contracts could try to scale back to Rs 30,000.

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