Gold steady despite demand drop

Overseas spot gold was steady on Thursday and was trading around $1,605 a troy ounce as investors hoped for monetary easing from central banks to boost a sagging global economy.

India's investment and jewellery demand for Q2 2012, fell to 181.3t, down from 294.5t in Q2 2011, the World Gold Council has stated in a release.

The economic slowdown, weak rupee and unresolved crises in Europe may have impacted fall in the demand.

On the domestic front, gold and silver advanced on the Multi Commodity Exchange (MCX) on Thursday, with gold for October delivery opening at Rs 30,049 per 10 grams and was seen trading at Rs 30,078 per 10 grams higher by 0.24% at 2.20 pm IST.
Gold for December contract delivery also rose and was seen trading at Rs 30,417 per 10 grams.

MCX silver futures edged up by Rs 133 per kg, while silver for March delivery was seen trading at Rs 53,566 per kg same time.
Spot bullion was seen trading around Rs 29,905 per 10 grams. Delhi spot gold of 99.9 and 99.5% purity was at Rs 30,370 and Rs 30,170 per 10 grams, respectively.

The partially convertible Indian Rupee depreciated further on Thursday and breached 55-a mark, making gold more expensive for the physical buyers.

GoodReturns.in