Gold futures up on global cues

MUMBAI: Gold for August delivery on MCX traded up two-fifths of a per cent, tracking overseas futures traded on Comex division of Nymex, which quoted 0.5% up in early noon trades.

Demand overseas is low because of better than anticipated US jobs data for June, which shows that economy is on a mend and probability of a hike in interest rates that will make the dollar stronger. This is negative for gold.

Indian gold, which takes cues from overseas gold, has also been range-bound due to the low demand season and on anticipations that the Modi government will cut import duty on gold at 10% by 2 percentage points in Thursday's budget.

However, some market constituents feared a duty cut may be unlikely, given that increased demand following it could stoke demand for the metal and put pressure on the rupee.