MUMBAI: Indian gold stayed flat as a weaker rupee outweighed leads from overseas markets, with traders seeking direction in prices before booking deals to stock for festival season.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was at 29,802 rupees per 10 grams, up 0.12 percent at 0836 GMT, still near the previous session's low of 29,756 rupees, a level last seen on July 24.
Global gold was little changed on Wednesday after climbing for three days, supported by hopes that Europe and the United States would launch more stimulus measures to help shore up their faltering economies.
The rupee, which weakened on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Physical buying still remained low as prices stayed near the keenly watched 30,000 rupees mark, with traders bracing for a bad season after expectations of deficient monsoon rains.
"Festival demand is not materialising yet. Prices are consolidating and not giving clear direction," said an official from a private bullion importing bank.
Rural areas, which depend on monsoons for yields and income, contribute to about 60 percent of the country's demand.
Silver traded lower following global leads.
Silver for September delivery on the MCX was down 0.26 percent at 53,230 rupees per kg.
Comments
Comments are closed.