Gold traders avoid positions after duty hike

MUMBAI: Gold traders in India, the world's biggest buyer of bullion, refrained from taking fresh positions after a duty increase on precious metals. Local prices eased from their highest level in nearly a week on a stronger rupee.

* The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.36 percent lower at 27,488 rupees per 10 grams, easing from the previous session's high of 27,778 rupees, a level last seen on Jan. 12.

* "People are not ready to book deals," said Haresh Acharya, head of bullion desk, Parker Bullion. "Silver market is dead."

* India's government raised the import duty on bullion to 2 percent on value from the previous flat rate of 300 rupees per 10 grams, and to 6 percent on value from 1,500 rupees per kilogram on silver.

* The rupee, which hit its highest level in two months on Wednesday, plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

* Silver prices also fell from their highest level in nearly a month following the yellow metal.

* Silver for March delivery on the MCX was 0.21 percent lower at 53,097 rupees per kg, after hitting a month's high of 53,874 rupees in the previous session.