Listless gold trades flat again; seeks direction

Gold futures were trading marginally lower on the Multi Commodity Exchange, with the August 2012 contract, at Rs 29,430 per 10 grams, down by 0.06%. The contract opened at Rs. 29,441 against the previous closing price of Rs. 29,448 and touched an intra-day low of Rs. 29,392.

Physical traders preferred to stay on sidelines today, unable to gauge the direction of the precious metal. The Indian currency has depreciated to its lowest level in three weeks today, making gold imports more expensive.

Sentiment was also affected as the dollar strengthened against the rupee and other major currencies. International gold was seen trading at $1,575 an ounce.

Spot gold was seen trading higher at Rs 29,407 per 10 grams.

Of late, precious-metals have lost their safe-haven title and have been witnessing a similar trend to other riskier assets due to volatility in currency markets.

GoodReturns.in

Story first published: Tuesday, July 24, 2012, 15:18 [IST]