Gold just above Rs 30,000 as demand slackens

Indian gold traded just a tad above the keenly-watched 30,000-rupees mark on Wednesday, with traders unwilling to get stuck with high priced inventory in a seasonally slack demand period.

[caption id="attachment_342426" align="alignleft" width="380" caption="Gold demand in India is likely to remain sluggish in the coming months due to a lack of weddings. Reuters"][/caption]

On Wednesday, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.15 percent higher at 30,014 rupees per 10 grams. The contract had struck a record of 30,295 rupees on 6 June . " The demand is zero as prices are higher," said Haresh Acharya, head of bullion desk, Parker Bullion.

Gold demand in India is likely to remain sluggish in the coming months due to a lack of weddings and festivals during the monsoon. In the overseas market, however, gold rose a tad due to a weaker dollar. Investors will be eyeing the weekend Greek election and next week's Federal Open Market Committee ( FOMC) meeting for direction in prices.

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Reuters