India gold prices ease on lower demand

Gold prices eased in India after nearing the crucial 15K mark, mainly on lack of demand due to higher prices. Demand in the world's biggest gold consumer stayed weak on Wednesday as high prices dampened buying interest. Trade commodities or equities from across the globe. Join Now On the Multi Commodity Exchange, the most active August contract was at 14,847 rupees at 4.01 p.m, losing 0.4 percent from previous close while the immediate June contract was seen trading at 14,842 rupees, down by 0.2 percent at the same time. Meanwhile, Bullion edged lower in early European trade Wednesday as the dollar recovered lost ground versus the euro. Spot gold was seen trading at $980.65 an ounce at 4.00 p.m India time as against $980.85 an ounce late in New York on Tuesday. However, Investor interest in the metal remained relatively firm. Holdings of the SPDR Gold Trust exchange-traded fund were at record levels on Tuesday, while ETF Securities said holdings of its GBS ETF rose more than 7,000 ounces that day. Gold, often bought as a hedge against weakness in the U.S. currency, rose in earlier trade as the dollar fell to five-month lows versus the euro on sharper risk appetite. The greenback rose to session highs against the euro after reports of downgrade in U.S. sovereign credit ratings would not discourage Asian central banks from buying U.S. Treasuries. Earlier the U.S. currency hit a five-month trough against the euro as traders sold the unit in favour of higher-yielding currencies on growing hopes the economy may be recovering from its lows. Among other precious metals, silver was at $15.93 an ounce against $15.94. The world's largest silver exchange-traded fund, the iShares Silver Trust, said its holdings dipped by 3.11 tones on Tuesday, but remain near record levels. Spot platinum was quoted at $1,240.50 an ounce against $1,238.50 late in New York on day, while spot palladium was at $249 against $246.50.