Indian gold futures ease as dollar rises, crude dips

Mumbai: Indian gold futures eased slightly on Thursday, 13 September, as the dollar rose a little and crude oil softened, with commodity brokerages expecting the metal to stay supported or step down further.

October gold was trading Rs6 down at Rs9,325 per 10 grams on the Multi Commodity exchange at 11:00am. December gold lost Rs8 to Rs9,417.

“Momentum indicators have started to turn back from the overbought zones and it is the first signal of a selling tone in the market," said Pradeep Unni, assistant vice-president — commodity research, at Vision Commodities Services DMCC. Unni said the October contract on the Multi Commodity Exchange of India Ltd (MCX) could head to its support of Rs9,282 per 10 grams.

Another analyst at IL&FS Investsmart Commodities Ltd said the near-month contract may remain supported as the dollar could face downward pressure with the FOMC meeting next week on US interest rates.

Open interest for the October contract on the MCX was at 10,274 lots, up from 10,212 on Wednesday. Volume the previous day was at 27.446 kg.

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