Gold trades flat, traders seek direction

* At 1:59 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was flat at Rs 29,264 per 10 grams.

* Global gold edged lower, dropping for a fourth session out of six. Investors remained cautious on indications the Federal Reserve was unlikely to launch more monetary stimulus until US economic conditions weakened further.

* The rupee, which lost ground on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "There is a slight pick-up... but this will taper off in a few days," said Harshad Ajemra, proprietor, JJ Gold House, a wholesaler in Kolkata.

* Traders would also eye the progress of the monsoon, which has been scant so far. Rural areas, which contribute to 60% of the gold demand, depend on monsoon rains for better farm productivity, yields and profits.

* Gold imports could pick up in the second half of this year if prices ease, but annual volumes will still fall 30% after a tax hike that could crimp demand.

* Silver edged lower following copper, another industrial metal.

* The most-active silver for September delivery was 0.47% lower at Rs 52,487 per kg.