Gold edges down, traders eye US job data

Indian gold traded a tad lower on Friday, still near the lowest level in ten months, weighed by a stronger rupee, with traders waiting for the US job data for direction in prices before stocking for weddings.

The actively traded gold contract for May delivery on the Multi-Commodity Exchange (MCX) was Rs 42 lower at Rs 29,363 per 10gm at 3.15 pm, still near the previous session's low of Rs 29,132, a level last seen on June 1, 2012.

"There a few stray deals and people are waiting for US non-farm payroll data," said a dealer with a private bank in Mumbai, which imports bullion.

Strong employment data could prompt the US Federal Reserve to end its bullion-friendly bond-buying programme earlier than expected and dent gold's safe-haven appeal as worries about inflation ebb.

Weddings will start in India, the world's biggest buyer of gold, and continue till early June. Festivals will also take place during this period.

India has been trying to curb imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 percent to 6 percent in January.

Finance minister P Chidambaram suggested on Tuesday that the government was unlikely to raise the import tax on gold further to avoid gold smuggling.

Silver contract for May delivery on the MCX was 0.12 percent lower at Rs 50,895 per kg.