RTRS:Gold demand stays subdued in India on weak rupee
(Reuters) - Gold demand in India, one of the world's leading consumers, was subdued on Thursday after a drop in rupee hardened prices during a traditionally lean buying season.
* The most-active gold contract for August delivery on the Multi Commodity Exchange (MCX) was up 0.55 percent at 29,734 rupees per 10 grams by 2.01 p.m.
* The rupee, which eased 1 percent on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* "Today demand is negligible. The drop in rupee raised prices, while buyers are waiting for a correction," said a Mumbai-based dealer with a state-run bank dealing in bullion.
"There is no major event to boost gold buying. If prices come down to 29,000 rupees then we can see pickup in demand," the dealer said.
* International gold prices traded in a tight $6 range around $1,615 an ounce on Thursday ahead of an expected rate cut by the European Central Bank that should boost liquidity and enhance bullion's appeal.
* Poor rainfall in most parts of the country is also weighing on sentiment as monsoon rains are vital to incomes in rural areas, which contribute to 60 percent of gold imports, dealers said.
* At 1:15 p.m., following were the prices in rupees quoted by HDFC Bank in the spot market :
