Gold traders at bay; seeks price falls

Gold traders at bay; seeks price falls

Mumbai: India gold traders remained on the sidelines on Tuesday following a slight bounce back in international spot markets, where a weaker dollar supported the yellow metal, dealers said.

“There is no much action on the demand front as prices have edged up," said a dealer with a state-run bank in Mumbai.

International gold, which guides the domestic market, was trading $1,137.50/1,138.30 an ounce as against the previous close of $1,132.50/1,133.50.

The US dollar drifted lower on Tuesday as equity markets stabilised and worries over Greece’s fiscal woes eased just a little, favouring riskier trades in commodities and related currencies.

Dealers said traders sought lower prices to book their deals.

“Most of the deals are at around $1,125 (an ounce)," said another dealer with a private bank.

Traders were also eyeing the movements in rupee. The Indian rupee was steady in afternoon trade, after having traded in a narrow range, in the absence of fresh cues.