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India gold futures up ahead of Fed rate decision

India gold futures up ahead of Fed rate decision
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First Published: Tue, Sep 18 2007. 11 37 AM IST
Reuters
Mumbai: India’s gold futures were up on Tuesday, 18 September, tracking overseas markets that stayed near a 16-month high ahead of an interest rate decision by the US Federal Reserve.
Gold for October delivery was trading Rs25 up at Rs9,395 per 10 grams at 11:08am on the Multi Commodity Exchange of India Ltd (MCX). The December contract was up Rs28 to Rs9,501.
“The main story of the day would be the FOMC decision,” said Somnath Dey, head of metals and energy research at Religare Commodities Ltd.
Gold is firm as a 25-basis-points cut is expected in US interest rates in the wake of a credit market turmoil and housing market slowdown.
The FOMC decision is expected a little before midnight.
Dey said the October contract on the Multi Commodity Exchange of India Ltd. (MCX) may trade within Rs9,300-9,500 per 10 grams with volatility expected.
Another analyst at Karvy Comtrade said the bullish sentiment may continue to stay with the market also as the crude oil market is firm on fears of a supply squeeze.
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First Published: Tue, Sep 18 2007. 11 37 AM IST