Gold edges lower on rupee; traders seek declines

Gold edges lower on rupee; traders seek declines

Mumbai: Gold futures edged lower on Thursday afternoon weighed by a firm rupee, which made the dollar-quoted yellow metal cheaper, analysts said.

The most-traded gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.25% lower at 22,081 per 10 grams at 2:39pm.

The rupee was firm in afternoon trades on Thursday, tracking gains in the euro and local stocks, but month-end dollar demand from oil companies limited the rise.

Gold in the overseas market held steady after two days of gains and after passage of Greece’s austerity plan through parliament weighed on the dollar, but low speculative interest and physical demand are seen capping gold’s upside in the short term.

Physical trading was lacklustre as seasonally weak demand period is underway in the world’s biggest buyer of bullion. Farmers, the traditional buyers, usually divert their savings on farm equipment and pesticides for summer-sown crops from gold and silver in monsoon period.

“This period is always slack... There is demand but not to the extent seen in April and May," said a dealer with a private-run importing bank.

Traders sought price falls below the keenly-watched $1,500 an ounce mark to book deals.