Gold futures rose on COMEX amid a mixed bag of news as the dollar weakened against the euro and the U. S. producer price index fell more than expected in July. The gains were not visible on MCX as the strength in rupee against the dollar could not support the upside.
Silver futures settled flat on COMEX whereas ended lower on MCX following the decline in industrial metals on MCX. It shed 0.61 percent on MCX.
India's July gold imports slumped by two-thirds to 7.8 tonnes from a year earlier as high prices dented demand in the world's biggest market for the metal and a drought in some parts of the country could keep buying low, the the head of a trade body said on Tuesday.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,065.49 tonnes as of Aug. 18, steady from the previous business day.
GV Gold, Russia's seventh-largest gold miner, said on Tuesday net profit jumped 83 percent to 972.9 million roubles ($39 million) in 2008 after prices and production of the precious metal increased.
Gold and gold receivables held by euro zone central banks remained unchanged at 232.118 billion euros in the week ending Aug 14, the European Central Bank said on Tuesday.
The U. S. producer price index fell more than expected in July. It declined by 0.90 percent against the expected figure of -
Gold may trade range bound during the day as the fall in U. S. producer price index allayed the fears of inflationary concerns in the near future. However, any further fall in dollar and rise in crude prices may provide some support to gold prices.