RTRS:India gold edges higher; rupee movement eyed for cues
(Reuters) - India gold futures edged higher on Tuesday afternoon, following the overseas trend, with investors eyeing the rupee for direction in the precious metals complex, analysts said.
* Traders said physical buying edged up as overseas prices stayed near the keenly-watched $1,500 an ounce. Premiums charged on London prices were steady in the range of $1.0-1.4.
* At 1:11 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.29 percent higher at 22,143 rupees per 10 grams.
* "There is seasonal impact on demand... More liquidation is on the cards in gold," said a dealer with a private-run bullion importing bank.
* Farmers, the traditional buyers, usually divert their savings on farm equipment and pesticides for summer-sown crops from gold and silver in monsoon period.
* Overseas gold rose to session highs, set to break three straight days of declines, after the euro extended gains against the dollar and European equities rose ahead of a parliamentary vote on Greek austerity measures and other commodities, including crude oil pared earlier losses.
* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
