Mumbaii: Gold futures steadied near their highest level in more than a week as support from overseas markets was offset by a firm rupee, dealers said.
Dealers said physical buying was slack in the middle of a seasonally lean period.
At 2:03pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.16% higher at Rs 22,685 per 10 grams, almost steady at the highest level seen since 9 June.
Overseas gold edged up and held near its highest in two weeks, with no quick end in sight to economic turmoil in Europe after Greece was told to approve a new austerity package to avoid defaulting on its debt.
However, a firm rupee weighed on sentiment, keeping the local prices flat. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
India, the world’s biggest buyer of yellow metal, is in a seasonally lean demand period due to monsoon as farmers divert their savings on agricultural equipment and fertiliser for summer-sown or kharif crops.