MUMBAI, July 18 (Reuters) - Indian gold edged lower on
Wednesday afternoon with physical traders watching the progress
of monsoon rains, vital to gold demand in rural areas, though a
weaker rupee kept the downside limited.
* The most active gold for August delivery on the Multi
Commodity Exchange (MCX) was 0.15 percent lower at 29,244 rupees
per 10 grams.
* Global gold edged lower, extending losses from the
previous session when U.S. Federal Reserve Chairman Ben Bernanke
disappointed gold bugs by offering no signs of imminent monetary
stimulus measures.
* The rupee, which traded weaker on Wednesday, plays an
important role in determining the landed cost of the
dollar-quoted yellow metal.
* Rural areas, which depend on monsoon and agriculture,
contribute to about 60 percent of India's gold demand.
* "Nothing is happening... we might have good physical
offtake after the monsoon," said Ketan Shroff, director with
Pushpak Bullion, a wholesaler in Mumbai.
* Festivals will start from early next month and continue
till November.
* Silver also fell in tandem with the yellow metal.
* Silver for September delivery was 0.28 percent
lower at 52,743 rupees per kg.
* At 1:15 p.m., following were the prices in rupees quoted
by Corporation Bank in the spot market :
Wednesday Tuesday
=========================================
Gold .999/10 grams 29,390 29,504
Silver .999/kg 51,465 51,241
At 1:57 p.m., following were the prices in rupees on the
Multi Commodity Exchange of India Ltd <0#MAU:>:
Contract Current price Net change
=============================================
Aug gold 29,256 -33
July silver 52,751 -139
