Gold reverses losses as rupee helps

Indian gold reversed early losses to trade a tad higher on Friday evening on a weaker rupee, though sluggish overseas markets kept the upside limited. Physical traders sought declines in prices to book the yellow metal.

* The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.33% higher at Rs 29,414 per 10 grams. The contract struck a record of Rs 30,295 on June 6.
* The rupee, which eased on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Global gold fell to a one-week low, extending losses from the previous day when the U.S. Federal Reserve gave no hint of plans for imminent stimulus.
* Gold sales have fallen by 70% compared to last year, said Haresh Acharya, head of the bullion desk at wholesaler Parker Bullion in Ahmedabad, adding, "demand would remain slow."
* Gold demand is likely to remain sluggish in coming months due to the onset of monsoon rains and a relatively inactive season for weddings and festivals. High prices also attract scrap in the domestic market.
* Silver was down 0.52% at Rs 53,812 per kg.