RTRS:Indian gold recovers, traders stay away on weak demand
(Reuters) - Indian gold edged higher on Monday, recovering partially from last week's losses of about 2 percent, helped by a weaker rupee, but physical traders stayed away due to seasonally weak demand.
* At 0903 GMT, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.26 percent higher at 29,620 rupees per 10 grams. The contract had touched a low of 29,106 rupees last week.
* The rupee, which weakened on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Overseas gold firmed, rising nearly 1 percent at one stage on the euro zone's decision to help Spain's battered banks, which boosted risky assets and pressured the dollar.
* "People are not accepting high prices... there is not much demand in retail market," said Harshad Ajmera, proprietor, JJ Gold House.
* Gold demand is likely to remain sluggish in the coming months due to the onset of monsoon rains and a relatively inactive season for weddings and festivals. High prices also attract scrap in the domestic market.
* Silver also traded higher following the yellow metal. Silver for July delivery on the MCX was 0.84 percent higher 54,666 rupees per kg.
Following were the prices in rupees quoted by HDFC Bank in the spot market :
