Gold prices decline in India on global cues

KOLKATA: Gold prices softened in the futures and spot markets in line with international trends. The August contract for gold on MCX was down 0.49% at Rs 27,418 per 10 gm in morning trade.

The metal touched an intra-day high of Rs 27,511 per 10 gm and a low of Rs 27,416.

“Trading volumes are less as the traders are expecting a cut in import duty on gold in the upcoming budget,” said Hareesh V, senior analyst, Geojit Comtrade. “Most of the participants are staying away from the trade.” International prices have eased on strong US economic data, which has had an impact on Indian prices as well, he said.

In the spot market, gold declined Rs 100 to Rs 28,200 per 10 gm.

“There has been hardly any offtake in last few weeks,” said Hasmukh Parikh, a member of the Indian Bullion & Jewellers Association. “People are waiting to see what steps the new government takes on import duty and the 80:20 rule. We think that buying will pick up next week after assessing the impact of budget is over.”

In the international market, gold extended a decline from a three-month high as the outlook for higher borrowing costs in the US strengthened the dollar.

Bullion for immediate delivery fell as much as 0.4% to $1,315.57 an ounce, and was at $1,316.64 at 11:21 a.m. in Singapore, according to Bloomberg generic pricing. The metal rose to $1,332.33 on July 1, the highest price since March 24, and completed a fifth week of gains last week.

Gold for August delivery dropped 0.3% to $1,317.30 an ounce on the Comex in New York from July 3. US markets were closed July 4 for the Independence Day holiday and transactions will be booked today for settlement purposes.