Gold eases with world markets; demand poor

Gold eases with world markets; demand poor

Mumbai: Gold futures eased on Friday afternoon on a drop in the overseas market, but a weak rupee limited the downside, though spot demand was weak, and dealers said.

At 2:45pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was down 0.2% to 22,451 per 10 grams.

“For the past few days demand has been very weak. Wedding season demand is over, there is no festival this month to attract people to buy gold," S.L. Jain, a Delhi-based jeweller, said.

International gold edged lower on Friday, but jitters about whether Greece was edging closer to default and economic spillover from the country’s debt crisis could still spur safe haven buying.

The Indian rupee, which has a bearing on the landed cost of dollar-quoted gold, was at 44.9500/9550, weaker from the previous 44.90/91 per dollar dragged by weak local shares, with dollar purchases by oil companies as well as a large telecom company also weighing, dealers said.