Mumbai: Indian gold was trading flat on Tuesday as support from a falling rupee outweighed weak overseas leads, and physical traders kept to the sidelines for want of direction.
At 3:26pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.13% lower at Rs 29,724 per 10 grams.
The rupee, which fell past 56 to hit its lowest against the dollar in more than a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Global gold inched down on Tuesday after optimism about Spain’s bank bailout quickly gave way to renewed worries about the euro zone debt crisis ahead of a string of key events later this month.
Demand is pretty slow as people don’t have surplus cash, said Ketan Shroff, director, Pushpak Bullion, adding “farmers are not buying as it is their sowing time.”
Gold demand in India is likely to remain subdued in the coming months due to the onset of monsoon and a sluggish wedding and festival season.
Silver for July delivery was also flat at 54,655 rupees per kg.