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India gold tracks firm overseas markets, eyes Fed meet

India gold tracks firm overseas markets, eyes Fed meet
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First Published: Mon, Sep 17 2007. 12 25 PM IST
Updated: Mon, Sep 17 2007. 12 25 PM IST
Reuters
Mumbai: India’s gold futures were up on Monday, 17 September, tracking foreign markets that moved up on expectations of a rate cut in the US that could boost the metal’s safe-haven appeal, commodity brokerages said.
October gold was up Rs22 to Rs9,322 per 10 grams, at 11:24am on the Multi Commodity Exchange of India (MCX). The December contract was quoting Rs23 up at Rs9,423.
“For the day it is looking up, but my guess is that there could be profit-taking,” said Si Kannan, associate vice-president at Kotak Commodity Services Ltd.
Investors may choose to cut down positions during the day and on Tuesday, to avoid taking a risk ahead of the Fed meeting. In case the rate is not cut, gold may tank, analysts said.
“Those who want to play the Fed (expecting rates to be cut) would be buying,” said Dhiraj Kothari, analyst at Brics Commodities Pvt. Ltd. “Otherwise, gold is showing selling at higher levels.”
Kothari said the October contract on the Multi Commodity Exchange of India Ltd. (MCX) may trade in Rs9,250-9,350 range per 10 grams.
The open interest for October gold on MCX was at 9,735 lots, up from 9,628 on Saturday. Volume on Saturday was at 32.908 kg.
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First Published: Mon, Sep 17 2007. 12 25 PM IST
More Topics: Gold futures | MCX | Money Matters | Commodities |