Indian gold futures fall on global cues

NEW DELHI, Dec 30 (Reuters) - Indian gold futures dropped on Monday tracking global prices, which fell on expectations that an improvement in the U.S. economy would lower demand for the yellow metal.

* At 1018 GMT, the most-active gold for February delivery

MAUc1 was down 0.47 percent at 28,426 rupees per 10 grams on the Multi Commodity Exchange.

* Silver for March delivery MSVc1 was down 1.59 percent at 44,432 rupees per kg.

* International gold XAU= edged lower, heading for its biggest annual loss in more than three decades at nearly 30 percent, as firm equities and the prospect of a recovery in the global economy stole its shine. News Search ID:nL6N0K919E

* The partially convertible rupee, which plays a key role in determining the landed cost of the dollar-quoted metal, edged lower as a large state-run bank likely bought dollars on behalf of oil refiners. Href="NewsSearch">INR/

* "Gold-exchange traded fund outflows also indicate weaker investor interest," Kotak Commodity Services analysts wrote in a note. "However, choppiness in the U.S. dollar has lent some support. Gold may continue to trade weaker on Monday on optimism about the U.S. economy."

* 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.

* To curb a rising trade gap, the Indian government slapped a record import duty of 10 percent earlier this year and tied imports for domestic consumption with exports.

(Reporting by Krishna N Das; Editing by Sunil Nair)

((Krishna.Das@thomsonreuters.com)(+91-11-4178-1023, +91-98711-18314)(Reuters Messaging: Krishna.Das.thomsonreuters.com@reuters.net, @Krishnadas56))

Keywords: MARKETS INDIA PRECIOUS/