Gold futures declined for the second time in three sessions

Gold futures declined as the U.S. House of Representatives plans a vote today to temporarily suspend the nation’s borrowing limit and amid concern that demand is slowing in India, the world’s biggest consumer.

The House is expected to pass legislation that would suspend the government’s $16.4 trillion debt limit until May 19. At that point, the U.S. borrowing authority would be automatically increased to accommodate the amount the Treasury borrows. Bullion demand from India may be “muted” in the next few days as buyers wait for clarity on details related to this week’s import-tax increase, UBS AG said today.

Since 1960, Congress has raised or revised the debt limit 79 times, including 49 times under Republican presidents, according to the Treasury Department. Lawmakers have until March 1 before automatic spending reductions will start and until the end of that month to pass a bill to fund the government.

India raised import duties on gold and platinum to 6 percent from 4 percent.

Gold futures for February delivery fell to $1,683.10 an ounce on the Comex in New York, declining for the second time in three sessions.