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Gold steady on global cues; weak rupee may prop buying

Gold steady on global cues; weak rupee may prop buying
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First Published: Thu, Jul 28 2011. 01 52 PM IST
Updated: Thu, Jul 28 2011. 01 52 PM IST
Mumbai: Gold futures traded steady on Thursday afternoon tracking overseas markets, though a weaker rupee could buoy sentiment later in the session, dealers said.
The most-active August gold on the Multi Commodity Exchange (MCX) was 0.10% higher at Rs 23,123 per 10 grams. It had struck a record high of Rs 23,358 on 25 July.
Overseas spot gold took a breather after hitting record highs for two sessions this week, while sentiment remained supported by the deadlocked US debt ceiling talks.
The rupee eased, weighed down by falling shares, a sluggish euro and demand for dollars from oil importers. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Physical traders moved to the sidelines waiting for prices to fall.
“Demand is slow as prices are near record,” said Ketan Shroff, director with wholesaler Pushpak Bullion.
Retail gold demand is expected to gain pace next month, when the festival and wedding seasons start in the world’s biggest consumer of bullion.
Physical demand generally stayed absent at gold prices above $1610, said UBS in a daily report, adding “but the fact that we’ve begun to see average - rather than low - purchases at these levels suggests that buyers are starting to adjust to a much higher gold price.”
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First Published: Thu, Jul 28 2011. 01 52 PM IST
More Topics: Markets | India | Gold | Commodity | Bullion |