<div>Gold futures fell more than 1 percent on Thursday to their lowest level in more than two months, tailing overseas leads though a weaker rupee kept the downside limited, while premiums eased in the domestic market.<br /><br />At 5.22 pm , the most-active gold contract for February delivery was 1.36 per cent lower at Rs 28,474 per 10 gram on the Multi Commodity Exchange. It had hit a low of Rs 28,390 earlier in the day, a level last seen on October 15.<br /><br />Silver also dropped to its lowest level in nearly two weeks.<br /><br />Silver for March delivery was 2.95 per cent higher at Rs 45,009 per kg, after hitting a low of Rs 43,629, a level last seen on December 6, 2013.<br /><br />In the overseas market, gold slid more than 1 per cent to its lowest since late June after the US Federal Reserve took its first step away from the ultra-loose monetary policy that had helped drive bullion prices to record highs in recent years.<br /><br />The rupee, which weakened on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.<br /><br />In the domestic market, premiums eased to $110 an ounce from up to $160 an ounce quoted earlier this month.<br /><br />"Small jewellers are hit the most due to policy changes," said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in Kolkata, adding premiums had eased to $110 an ounce due to availability of smuggled yellow metal.<br /><br />Indian 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 said.<br /><br />To curb a rising trade gap, the Indian government slapped a record import duty of 10 per cent, and tied imports for domestic consumption with exports.<br /><br />India will keep a tight leash on gold imports despite a recent improvement in its trade deficit and lobbying by a bullion industry struggling with high premiums and a supply crunch.<br /><br />(Reuters)</div>
