Gold, silver trade flat; physical demand still muted

Last Updated: Fri, Jun 14, 2013 09:45 hrs
Customer looks in mirror after wearing gold earring inside jewellery shop in Hyderabad

India gold and silver futures traded steady on Friday as pressure from a stronger rupee at home was offset by firm global markets, with physical traders preferring to stay on the sidelines in a seasonally slack demand period.

At 2.04 p.m, the actively traded gold on the August delivery on the Multi Commodity Exchange (MCX) was 0.34 percent lower at 27,670 rupees per 10 grams weighed by a stronger local currency.

The rupee, which traded stronger tracking gains in most Asian peers, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

"Demand is very low as there are no weddings...," said S.L. Jain, vice president of All India Sarafa Association, a trade body.

The festival and wedding season has ended and will re-start in August.

Gold imports into India, the world's biggest buyer of bullion, have fallen from an average of $135 million in the first half of May to $36 million in the second half of the month, the finance minister said on Wednesday.

The government does not need to act as of now to further moderate gold imports as the recent steps have already had a considerable impact, a government official said.

Silver for July delivery was 0.09 percent higher at 43,275 rupees per kilogram.

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