The most active August gold contract MAUQ9 was 0.13 percent lower 14,585 rupees per 10 grams at 11:17 a.m.
"Traders would eye for comments from the G8 meet for direction," said Debjyoti Chattejee, assistant vice-president with ADMISI Commodities. "The range seen is 14,360-14,650 (rupees)."
U.S. crude futures dropped towards $62 a barrel, extending losses from the previous day after industry data showed that distillate and gasoline stockpiles rose more than expected last week. See [ID:nT90508]
Falling crude diminishes gold appeal as a safe hedge against inflation.
The Indian rupee hit its lowest in two weeks as local shares fell in tandem with regional markets, triggering concerns over sustainability of foreign fund inflows. See [ID:nBOM147482]
A weak Indian rupee makes the dollar-quoted asset expensive.
The market is looking for any comments on the dollar's role as the global reserve currency at the Group of Eight leaders' meeting starting on Wednesday, which could have an impact on the foreign exchange markets and consequently on gold.
Gold may trade in the range of 14,480-14,650 rupees, said Abhishek Chauhan, an analyst with Angel Commodities
