Gold trades flat domestically; EU Summit eyed

Business

oi-Sneha

By Sneha B K

Published: Wednesday, June 27, 2012, 14:43 [IST]

Gold Futures reversed early gains and was seen trading flat on Wednesday ahead of EU meet which is scheduled for June 28 and 29. Investors remained sidelined on concerns that the European Finance Ministers may not come out with firm measures to tackle the nation's debt crisis.

Gold which used to be a hedge against economic instability has lost its safe-haven appeal in recent times due to currency volatility.

The dollar has moved up significantly against the basket of currencies, which has made gold expensive for other countries. Investors are shying away from the precious metal due to its high-priced tag.

Meanwhile, International spot gold was trading above $1,568 an ounce, while on the domestic front, MCX gold futures for August delivery contract remained flat at Rs 29,937 per 10 grams.

Bullion prices in India have edged lower, gold of 99.9 and 99.5% purity was seen at Rs 30,435 and Rs 30,235 per 10 grams, respectively.

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