Gold futures were trading on a flat note in the domestic market on Wednesday as traders exited positions in the yellow metal amid weak global cues. However, the depreciation of the rupee against the greenback offset the losses witnessed in the precious metal in the overseas market.

Gold futures slumped to a one-week low in the overseas market on Wednesday as a stronger dollar curbed the demand for the precious metal as an alternative asset. The dollar strengthened against a basket of currencies while the euro fell against the greenback after Spain’s sovereign credit rating was cut by Egan-Jones Ratings Co. to B from BB- amid the nation’s worsening economic outlook.

Investors flocked to the safety of the greenback as Spain’s deepening debt woes raised concerns that Europe’s debt turmoil was escalating. A stronger dollar makes the precious metal more expensive for those holding other currencies, thus denting its demand.

At the MCX, the price of the June 2012 contract was trading at Rs 28,859 per 10 grams, unchanged from its previous close, after opening at Rs 28,845, against a previous close of Rs 28,859. It touched an intra-day low of Rs 28,810 till trading (At 15:03 PM IST).