Gold traders refrain from new deals

Gold traders in India were hesitant to place deals in a slack demand period even as prices edged lower weighed by a stronger rupee and weak overseas markets.

At 3:19 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.41% lower at Rs 29,874 per 10 grams.

Rupee, which traded firm on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

COMEX gold for August delivery was down 0.51% lower at $1,570.3 an ounce.

Traders in India are waiting for monsoon rains to pick up, which is vital to farm productivity and profits. Rural areas contribute to about 60% of gold imports.

"Fresh imports are not happening as prices are still near Rs 30,000," said Mayank Khemka, managing director, Khemka Group, a gold wholesaler in Delhi.

However, there could be a pick up in imports in the second half of the year, if record prices ease but annual volumes will still fall about 30% after a tax hike, which could crimp demand until 2014, the Bombay Bullion Association head said.

Monsoon rains were again below average last week and failed to cover as much of the country as they should have, the weather office said.

Silver also followed the yellow metal.

Silver for July delivery on the MCX was 0.28% lower at Rs 52,620 per kg.

At 1:15 p.m., following were the prices in rupees quoted by HDFC Bank in the spot market: