Gold importers on sidelines as rupee eases further

Gold importers in India, the world's biggest buyer of the metal, preferred to stay on the sidelines on Monday as a weaker rupee limited the downside in prices, a week after import duties were left intact.

* Imports have slowed in March due to tight liquidity ahead of the fiscal year-end. The wedding season, which pushes up demand, will re-start in April and continue till early June.

* "Buying is slow due to rupee depreciation, imports will slow down further due to financial year ending," said Haresh Acharya, head of bullion desk, Parker Bullion.

* At 1:43 p.m., the most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.10 percent lower at Rs 29,708 per 10 grams.

* The rupee, which traded weaker on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Overseas gold firmed, bouncing from a one-week low hit on Friday, supported by physical buying in Asia, but robust US economic data dented bullion's safe-haven appeal.

* India kept its gold import duty unchanged in Thursday's federal budget, defying industry expectations that the world's biggest bullion buyer would increase rates to curb demand and rein in a record current account deficit.

* Silver for March delivery on the MCX was 0.23 percent lower at Rs 53,741 per kg.