Gold on track for 3% loss in March quarter

Indian gold futures continued their losing streak on Thursday due to a sligthly firmer rupee, with the yellow metal on track for a 3 percent losses for the March quarter.

* The actively-traded gold for April delivery on the Multi Commodity Exchange was 84 rupees lower at 29,548 rupees per 10 grams. The contract is down more than 3.3 percent in the March quarter.

* The rupee, which traded a tad firm on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* In the overseas market, gold held steady above USD 1,600 an ounce on worries the Cyprus rescue deal could become a blueprint for solving banking crises in the euro zone, supporting the precious metal's safe-haven appeal.

* Demand for the yellow metal has been lacklustre due to lack of liquidity ahead of the fiscal year end, and after a more than 50 percent hike in import duty to 6 percent in the middle of January.

* "Market is in a long weekend mood, with only need-based buying. We will have to see how wedding buying pans out in the first week of April," said a dealer with a private bullion importing bank.

* The wedding season will re-start next month, with Akshaya Tritiya, the second biggest gold buying festival after Dhanteras, slated for May. The market is shut for a public holiday on Friday.

* Silver for May delivery on the MCX was 154 rupees lower at 53,908 rupees per kg.