Gold flat near 2-week high; traders stay away

Gold flat near 2-week high; traders stay away

Mumbai: Gold futures steadied on Thursday afternoon at their highest level in more than two weeks, as a strong rupee offset firm overseas cues, and traders awaited a fall for booking deals, dealers said.

The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was trading flat at 22,199 per 10 grams. The contract had struck a high of 22,257 in the previous session, a level last seen in late May.

“Demand is poor because of prices trading above $1,500," said a dealer with a state-run, bullion-importing bank.

Overseas gold prices edged higher, building on three days of gains, supported by inflation concerns that are pushing central banks to raise rates, while an ongoing debt crisis in the euro zone also underpinned sentiment.

The rupee strengthened on Thursday, bolstered by a sharp revival in foreign equity inflows and tailing firmer Asian currencies.

The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.