Gold eases; demand weak as farmers busy sowing

Gold eases; demand weak as farmers busy sowing

Mumbai: The gold futures eased on Wednesday following losses in overseas markets, and demand in the domestic spot market remained muted as farmers were busy with sowing operations, dealers said.

At 3:24 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was down 0.16% to 22,313 per 10 grams.

“Farmers are busy in sowing operations. Demand is negligible from rural India. Wedding season demand has also vanished," said a Mumbai-based dealer with a state-run bank dealing in bullion.

International gold slipped on Wednesday as a stronger dollar prompted a flurry of sales, but investor buying sparked by sovereign debt concerns and inflationary pressures.

Jewellers across Asia rushed to replenish stocks after a recent drop in gold prices, but main consumer India showed little interest as farmers turned their attention to their crop during the monsoon season, dealers said on Tuesday.