Reversing morning gains gold futures were trading flat mirroring global trends. Gold futures for August 2012 contract, at MCX, were trading at Rs. 29,616 per 10 grams, down by 0.03% at 2.20 pm IST, after opening at Rs. 29,603 per 10grams. It touched an intra-day high of Rs. 29,665 per 10 grams.
Disappointing U.S. jobs report dampened sentiments as it spurred fears of deflation, prompting investors to seek safety in riskier assets like the dollar.
Dollar has moved up significantly against the basket of currencies, which has made gold expensive for rest of the nations.
Back in India, gold of 99.9 and 99.5% purity was at Rs 30,025 and Rs 29,825 per 10 grams, respectively. Ahmadabad Spot gold on MCX was seen at Rs 29,533 per 10 grams
MCX silver futures edged marginally higher by Rs 62 per kg, silver for September delivery was seen trading at Rs 53,229 per kgs.
International spot gold was seen trading at US$1,580 an ounce. However, investors are curious as sluggish US employment data rekindled speculation that the Federal Reserve may launch a new round of monetary stimulus to boost growth.