Gold futures ease from two-month high

Indian gold futures eased from their highest level in nearly two months weighed by a reversal in the rupee, which hit a record low in the previous session.

The actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.49 percent lower at 27,754 rupees per 10 grams, falling from a Tuesday high of 28,288 rupees, a level last seen on April 13.

The rupee was stronger tracking gains in most other Asian currencies. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the domestic physical market, demand remained subdued and importers and wholesalers struggled to vacate supplies from May, when imports were almost double of a month's average.

The government does not need to act as of now to further moderate gold imports as the recent steps have already had a considerable impact, a government official said.

"Retail demand is totally absent...," said Daman Prakash Rathod, director of MNC Bullion, a wholesaler in Chennai, adding that the supplies are enough to meet a week's demand in case of a sharp fall in prices.

The Indian government raised the import duty on gold to 8 percent after a ban on consignment imports by banks, state-run agencies and premier trading houses. India's festival and wedding season has ended and will re-start in August.

Silver for July delivery on the MCX was 0.30 percent lower at 43,480 rupees per kilogram.