MUMBAI (Reuters) – India gold futures were steady on Friday afternoon near their lowest level in a month, in step with overseas markets, although a firm rupee at its highest in two months weighed on sentiment, analysts said.
* The most-traded gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.18 percent lower at 21,864 rupees per 10 grams at 12:52 p.m., steady near the lowest level seen since June 2. The contract had shed more than a percent in the previous session.
* Overseas gold prices held just below $1,500 an ounce in Europe, little changed from a week before as Greece's approval of a key austerity package diminished the precious metal's appeal as a haven from risk, although slight gains in the euro lent support.
* The rupee climbed to its highest level in nearly two months, buoyed by robust dollar inflows, higher local shares and strong Asian peers.
* Physical buying edged up as traders continued to book bargains below the keenly-watched $1,500 an ounce. Buying was slow earlier this week due to a seasonal lull in demand.
* "Buying is good, we must have covered for 300-400 kg from yesterday, even the rupee is acting in good support," said a dealer with a state-run bullion importing bank. Dealers said premiums charged were steady at $1.5 an ounce on London prices.
* Farmers, the traditional buyers, usually divert their savings on farm equipment and pesticides for summer-sown crops from gold and silver in monsoon period.
(Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)
