Indian Gold Futures Steady, Stronger Rupee May be a Negative

India gold futures were steady on Monday afternoon following a similar trend in overseas markets, although a stronger rupee could weigh on sentiment later in the day, dealers said.

The most-active gold for December delivery on the Multi Commodity Exchange was 0.10 percent higher 26,913 rupees per 10 grams.

Global gold hovered around $1,680, after posting its biggest weekly gain since early September, as investors await concrete steps to tackle the euro zone debt crisis that could come out of a European Union summit this weekend.

The Indian rupee nudged higher comforted by a strong euro, although volatility in domestic equities and dollar demand from local oil refiners limited the gains.

The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

Physical buying retreated as prices edged higher on Friday to steady at $1,692 an ounce.

There was good demand when gold came to $1,670-$1,680. We have some deals at 1,680 (an ounce) now, said a dealer with a state-run, bullion-importing bank.

India gold demand is likely to peak in the last week of October, when gold buying festivals like Dhanteras and Diwali are slated.