India gold steady at over 1-week high; demand muted

(Reuters) - India gold futures steadied near their highest level in more than a week as support from overseas markets was offset by a firm rupee, dealers said.

 

* Dealers said physical buying was slack in the middle of a seasonally lean period.
* At 2:03 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.16 percent higher at 22,685 rupees per 10 grams, almost steady at the highest level seen since June 9.
* Overseas gold edged up and held near its highest in two weeks, with no quick end in sight to economic turmoil in Europe after Greece was told to approve a new austerity package to avoid defaulting on its debt.
* However, a firm rupee weighed on sentiment, keeping the local prices flat. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* India, the world's biggest buyer of yellow metal, is in a seasonally lean demand period due to monsoon as farmers divert their savings on agricultural equipment and fertiliser for summer-sown or kharif crops.