NEW DELHI : Gold prices declined in India’s spot and futures trade Friday, tracking global trends as buying in the country, the world's largest bullion consumer, was light as dealers awaited further price falls.
On the Multi Commodity Exchange of India (MCX) the most traded August contract was seen trading at Rs 14,451 rupees at 5.40 p.m, down 30 rupees from the previous close.
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October contract was at Rs 14,460 per ten grams while spot gold prices were at Rs 14,451 per ten grams and sovereign was at Rs 11,561 per eight grams at the same time.
Open interest for August gold on MCX was at 12,724 lots, up from 12,632 a day earlier. Volume on Thursday was 26.18 kg.
Meanwhile global gold futures also fell Friday, heading for a weekly loss of more than 2 percent as tumbling oil prices and a stronger dollar reduced the metal's appeal as a hedge against inflation and a weak currency.
August gold futures fell $8.80, or 1%, to $907.40 an ounce in early North American electronic trading.
Gold slipped in European trade as the firmer dollar and weaker oil pressured prices, but losses were limited as physical buying curbed the metal's slide.
Gold has declined 2 percent so far this week as the dollar strengthened, weighing on commodities. However, it is holding above a two-month low of $904.70 hit on Wednesday.
Spot gold was bid at $908.60 an ounce at 5.40 p.m Indian time, against $911.45 an ounce late in New York on Thursday.
U.S. gold futures for August delivery on the COMEX division of the New York Mercantile Exchange fell $7.40 to $908.80 an ounce.
Gold has come under pressure from the firmer dollar, which makes the metal more expensive for holders of other currencies and dents its appeal as an alternative asset.
The dollar climbed against a basket of currencies as weaker equity markets and caution ahead of the U.S. corporate earnings season boosted interest in the currency as a haven from risk.
Other commodities also weakened. Oil, widely seen as the bellwether of the asset class, slipped towards $60 a barrel on Friday as economic pessimism deepened and traders worried about new rules to curb speculation.
While physical demand for gold is picking up, activity remains relatively quiet compared to the heavy buying seen at the beginning of the year.
Meanwhile holdings of the SPDR Gold Trust, the world's largest gold exchange-traded fund, were unchanged on Thursday.
