Gold futures recover; jewellers struggle for supply

MUMBAI (Reuters) - Gold futures in India recovered on Tuesday in line with overseas markets and a weaker rupee, though jewellers still struggled with limited stocks in the peak wedding season, supporting premiums.

At 1145 GMT, the most-active gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.69 percent higher at 29,319 rupees per 10 grams.

Silver for March delivery on the MCX was 1.48 percent higher at 44,812 rupees per kg.

"The cycle of shipments is elongated depending on exports... it normally takes 4-5 weeks between first and the second lot," said a dealer with a private bullion importing bank in Mumbai.

Gold imports may fall 70 percent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half the usual levels at 500-550 tonnes next year if new import rules are maintained, a top trade body official.

"There are only three main players importing gold, which are Scotia Bank, MMTC and State Bank of India...," said Haresh Soni, chairman at All India Gems and Jewellery Trade Federation, adding premiums were steady at $150 an ounce.

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)