Gold down, physical buyers await more falls

Indian gold shed more than half a% on Monday to trade near its lowest level in a week, weighed by global markets, but physical traders were unwilling to book deals awaiting further price falls.

At 13:30PM, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.30% lower at 30,064 rupees per 10 grams, after hitting a low of 29,975 rupees during the session, a level last seen on June 13.

Global gold fell for the first time in seven sessions as the risk of a Greek exit from the euro zone subsided after parties backing a bailout for the country won an election, denting the metal's safe-haven appeal.

"Buying is slow as prices are still high... people are waiting for correction," said Ketan Shroff, director at Pushpak Bullion, a gold wholesaler in Mumbai.

Gold demand in India, the world's biggest buyer of the yellow metal, is likely to remain sluggish in coming months due to lack of weddings and festivals during the monsoon.

Silver also edged lower following the yellow metal.

The most-traded silver for July delivery on the MCX was 0.33% lower at Rs 54,360 per kg.