Indian gold trades flat; traders wary

Indian gold traded flat on Wednesday following overseas markets, but physical traders awaited a fall in prices before booking deals in a seasonally slack demand period.

* At 0938 GMT, the most-active gold for August delivery was 0.03% higher at Rs 30,223 per 10 grams. The contract shed 0.32% in the previous session. * Gold in overseas market was USD 1,617.59-1,618.40 an ounce as against USD 1,616.60-1,619.60 on the previous day. * A trail of disappointing data indicating sluggish US economic growth has raised speculation the Federal Reserve's bond-buying scheme dubbed "Operation Twist," may last beyond its June deadline. * The onset of the rains curtails festive and wedding activity. Indian farmers, who depend on the monsoon for a good harvest, contribute to more than half the country's gold demand. * "It is still slow, we might see little bit of buying due to auspicious reasons tomorrow," said Ketan Shroff, director, Pushpak Bullion. * Gurupushyamrit, considered an auspicious day for new ventures, falls on Thursday. * Silver futures also traded flat following the yellow metal. * The most-traded silver for July delivery on the MCX was 0.01% lower at Rs 54,457 per kg.