Gold falls from record; scrap flow firm

Mumbai: Gold fell almost a percent from the previous day’s record high as the rupee hit its strongest level in two weeks and global gold prices fell, though physical traders waited for bigger falls before entering into deals. Scrap flow remained firm.

Most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.81% lower at Rs 29,821 per 10 grams, falling from the previous day’s record of Rs 30,295.

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

US gold futures contract for August delivery lost 0.91% to $1,619.4 per ounce.

“Scrap is coming into the market... retail sales will remain stable till August,” said Kumar Jain, vice president with Mumbai Jewellers Association.

Gold demand in India is likely to remain subdued in the coming months due to the onset of monsoon rains and a sluggish wedding and festival season. Indians have been selling jewellery in the market to cash in on a swift rise in prices.