Gold recovers partly on rupee

Gold recovers partly on rupee
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First Published: Wed, Mar 25 2009. 04 32 PM IST
Updated: Wed, Mar 25 2009. 04 32 PM IST
Mumbai: India’s gold futures partly recovered on Wednesday, buoyed by a weak rupee and slightly firm overseas markets, analysts said.
The benchmark April gold contract was 0.67% higher at Rs15,174 per 10 grams at 11:29am, after a low of Rs15,010 in the previous session.
A weak rupee makes the dollar-quoted asset expensive. The Indian rupee fell to a one-week low on Wednesday.
COMEX gold for April delivery was 0.35% higher at $927.0 an ounce at 11:29am.
Analysts said gold may perk up later in the session and would be supported by record overseas ETF buying.
“Gold should be a little bullish today on rupee depreciation and record ETF holdings overseas,” said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai.
Gold may touch the resistance of Rs15,350 later in the session, Thiagarajan added.
The world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings rose to a record 1,124.99 tonnes as of 24 March.
“Prices are still looking intact on a rising trend inspite of a correction yesterday,” said BG Manjunath Prasad, a technical analyst with Way 2 Wealth Securities.
Open interest for April gold on MCX was at 13,065 lots, down from 13,122 a day earlier. Volume on Tuesday was 70.4 kg.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:30am.
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First Published: Wed, Mar 25 2009. 04 32 PM IST
More Topics: Markets | India | Dollar | Rupee | Gold |