Gold prices weaken on global cues

KOLKATA: Gold for August delivery was down 0.21% at Rs 27,630 per 10 gm on the MCX in morning trade. The gold rate touched an intraday high of Rs 27,669 and an intraday low of Rs 27,601. So far 761 contracts have been traded.

Gold prices have moved down Rs 1,658, or 5.66%, in the August series so far.

“Indian price has fallen as international prices have dropped despite rupee getting weaker,” said Hareesh V, senior analyst, Geojit Comtrade. “There is not much activity in the market as everybody is waiting for the budget announcement. Outlook for gold is still on the negative side.”

In the spot market, gold was hovering at around Rs 28,100 per 10 gm, down by almost Rs 200 from last Friday. Bullion dealers said that prices are almost steady now.

“There is not much volatility in the market. Movement is range bound. All eyes are on the budget now, which will be tabled on July 10. Monsoon too is critical for gold offtake,” said a Mumbai-based bullion dealer. Nearly 60% of Indian gold consumption is accounted for by rural India.

In the international market, bullion for immediate delivery was at $1,316.35 an ounce at 2:19 pm in Singapore from $1,316.17 on June 27, according to Bloomberg generic pricing. Prices rose for a fourth week last week, the longest rally since March, and are 9.6% higher this year. Bullion last posted two quarterly gains in 2011. Gold for August delivery declined 0.2% to $1,316.80 an ounce on the Comex in New York.