Gold traders on sidelines on policy uncertainty

MUMBAI (Reuters) - Gold traders in India, the world's biggest buyer of the metal, stayed on the sidelines on Friday as importers stopped shipments due to uncertainty over the new import policy even as prices fell more than 1.5 percent to their lowest level in a week.

* To keep a lid on record trade deficit, India tied gold imports for domestic use to exports, helping cut imports available to the local market by 60 percent. The government has also hiked the import tax twice in 2013 to 8 percent.

* There is a crisis of stocks as importers are waiting for clarity from the government, said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House, adding that premiums are steady at $40 an ounce on London prices.

* If there is a revival in demand, premiums may rise further, said Ajmera.

* June imports fell nearly 81 percent to 31.5 tonnes from a record 162 tonnes in May, although Finance Minister P. Chidambaram said imports had risen again in July, but without giving any details.

* India is hoping to contain gold imports well below 845 tonnes that were shipped last year, Chidambaram said.

* At 2:22 p.m, the actively traded gold for October delivery on the Multi Commodity Exchange (MCX) was 1.49 percent lower at 27,518 rupees per 10 grams, after hitting a low of 27,385 rupees, a level last seen on July 26.

* Silver for September delivery on the MCX fell 1.25 percent to 40,888 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Jijo Jacob)