Gold edges lower; traders await further falls

The most-active August contract om Multi Commodity Exchange (MCX) was trading 0.32 percent lower at 18,726 rupees per 10 grams,falling from a high of 18,770 rupees.

Gold held near $1,245 an ounce in Europe,just below its all-time high,as investors bought the metal as a haven from risk,with bullion holdings of exchange-traded funds rising to record levels.

They could buy if prices come down to $1,200 (an ounce),said another private bullion dealing bank’s dealer.

The Indian rupee strengthened to its highest in a month on Friday tracking local shares,and traders said they would watch the performance of the U.S. dollar overseas in the wake of an expected sell-off.

A strong rupee makes the dollar-denominated yellow metal cheaper for local buyers.

The onset of monsoon typically crimps gold demand in India as rural households,which account for 65 percent of total gold buying,slows as farmers use funds to buy seeds and fertiliser.

Gold imports into India may fall to less than 15 tonnes from 29.9 tonnes a year earlier as near-record prices and the onset of monsoon dent demand,a trade body official said.

Following were the prices being quoted by Scotia Mocatta in rupees in the spot market at 1:15 p.m.