Gold trades flat, traders wary

Indian gold traded flat on Wednesday following overseas markets, but physical traders awaited a fall in prices before booking deals in a seasonally slack demand period.

At 14:30 PM, the most-active gold for August delivery was 0.03% higher at Rs 30,223 per 10 grams. The contract shed 0.32% in the previous session.

Gold in overseas market was $1,617.59/1,618.40 an ounce as against $1,616.60/1,619.60 on the previous day.

A trail of disappointing data indicating sluggish U.S. economic growth has raised speculation the Federal Reserve's bond-buying scheme dubbed "Operation Twist," may last beyond its June deadline.

The onset of the rains curtails festive and wedding activity. Indian farmers, who depend on the monsoon for a good harvest, contribute to more than half the country's gold demand.

"It is still slow, we might see little bit of buying due to auspicious reasons tomorrow," said Ketan Shroff, director, Pushpak Bullion.

Gurupushyamrit, considered an auspicious day for new ventures, falls on Thursday.

Silver futures also traded flat following the yellow metal.

The most-traded silver for July delivery on the MCX was 0.01% lower at Rs 54,457 per kg.