Gold futures fall on global leads, firm rupee

Gold futures fell on Tuesday in line with overseas markets and on a firm rupee, with traders getting some respite after the finance minister suggested a hike in import duty on the yellow metal was unlikely.

* The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 130 rupees lower at 29,897 rupees per 10 grams on a firm rupee. * Overseas gold held below $1,600 an ounce on Tuesday as a slightly brighter-than-expected reading of euro zone manufacturing activity lifted stock markets, diverting interest from bullion. Also read: Gold rates trading lower in major cities in India * The rupee edged higher in range-bound trade, the first trading day of the new fiscal year, helped by bunched-up inflows, but a record current account deficit weighed on the currency's fortunes. * India, the world's biggest buyer of gold, 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. * Indian Finance Minister P. Chidambaram suggested on Tuesday that the government is unlikely to raise the import tax on gold further to avoid gold smuggling. * "It's a temporary relief, the government has to now think about reducing duties," said Kumar Jain, vice chairman of Mumbai Jewellers Association. * Silver for May delivery on the MCX was 0.39 percent lower at 52,522 rupees per kg.