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Gold prices steady traders seek direction

Prices 0.26% higher than previous close

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Reuters Mumbai
Last Updated : Jan 25 2013 | 4:04 AM IST

Indian gold futures steadied on Thursday, following global leads, but traders sought price direction ahead of the monetary policy statement from the European Central Bank.

* The most-active gold for August delivery on the Multi Commodity Exchange was 0.26% higher at 29,684 rupees per 10 grams at 1040 GMT.

* ECB chief Mario Draghi boosted hopes for fresh action to help the euro last week when he said he would do whatever was necessary to protect the single currency.

* "Any such central bank event is vital to the market and people generally refuse to take positions before this," said a dealer with a private bank in Mumbai.

* Physical demand has been subdued so far this year and is expected to remain dull.

* The festival season starts in August in India, the world's biggest gold buyer in 2011, and continues till November.

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* Traders are also watching the monsoon forecast for the second half of the June-September season, which is vital to gold demand in rural areas.

* Monsoon rains, which have been below normal so far, are vital to the farm economy in rural areas, which account for 60 percent of gold demand.

* Silver for September delivery on the MCX was 0.09% higher at 53,221 rupees per kg.

 

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First Published: Aug 02 2012 | 4:49 PM IST

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