India gold steady near record high; physical buying dull
India gold was steady on Wednesday afternoon near its record high following similar trend in the overseas markets, but traders expected a bout of profit-taking after a 18% rally since July, dealers said.business Updated: Aug 10, 2011 14:04 IST
India gold was steady on Wednesday afternoon near its record high following similar trend in the overseas markets, but traders expected a bout of profit-taking after a 18% rally since July, dealers said.
* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 0.07 percent higher at 25,750 rupees per 10 grams at 1:20 p.m., retreating from a record of 26,198 rupees hit in the previous session.
* Overseas gold held steady, hovering near a lifetime high around $1,778 an ounce struck in the previous session, but further gains could be capped by a rebound in equities after the US Federal Reserve's vow to keep rates near zero.
* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
* Physical demand retreated as traders sought bigger declines, even as the Hindu festival of Raksha Bandhan neared.
* "There is not much buying, the market is dull due to high prices," said a dealer with a private-run bullion importing bank in Mumbai.
* Gold buying in India, the world's biggest buyer of the yellow metal, is expected to gain pace on the back of festival and wedding demand.