Gold prices flat, traders seek price direction -
August 7th, 2012
Indian gold traded flat on Tuesday, consolidating in recent ranges following global trends, while a firmer rupee kept the upside in prices limited and traders sought price direction before booking deals ahead of festivals.
* The most-traded gold for October delivery on the Multi Commodity Exchange (MCX) was 0.18% higher at Rs 29,983 per 10 grams at 1:13 p.m. The contract has been trading in the Rs 29,851-30,025 range since August 3.
* Global gold traded nearly flat, retaining gains from the past two sessions as investors waited for action from the European Central Bank in hopes that it would do more to tackle the region's debt crisis.
* The rupee, which traded stronger on Tuesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* "Market is really slow, there is not much of activity before festivals," said a dealer with a private bank dealing in bullion.
* The festival season starts in August in India, the world's biggest gold buyer in 2011, and continues till November.
* Physical demand has already halved in India, the world's biggest consumer in 2011, due to doubling of import duty to 4%. Forecasts of deficient rains are likely to further threaten demand from rural areas, which contribute to 60% of the country's gold imports.
* Silver also traded steady following the yellow metal.
* Silver for September delivery on the MCX was 0.08% higher at Rs 53,389 per kg.