Mumbai: India’s gold futures fell on Thursday, 20 even though overseas markets rose, as the rupee’s nine-year high kept a lid on the import-driven metal’s local price, commodity brokerages said.
October gold was trading Rs46 down at Rs9,350 at 11:31am on the Multi Commodity Exchange of India (MCX). The December contract was also down Rs46 and was trading at Rs9,456.
“Most people in the local market believe the rupee can strengthen more against the dollar, so gold is subdued,” said Kishore Narne, vice president at Anand Rathi Commodities.
Narne said chances are gold may fall further during the day as the rupee is likely to stay around current levels and in the overseas markets, “the rally is overdone.”
Narne said profit taking as the weekend approaches may bring international gold prices down.
Another analyst, T. Gnanasekar, director at Commtrendz Research, held the same view and said October gold on the MCX may see supports at Rs9,305 per 10 grams and Rs9,248.