Mumbai: India’s gold futures were up on Thursday, 8 May, though foreign markets were steady, as the rupee weakened against the dollar boosting the import-driven gold.
Gold for June delivery was up Rs22 to Rs11,650 per 10 grams at around 11:30am on the Multi Commodity Exchange of India (MCX). The August contract gained Rs17 to Rs11,701.
Analysts said the metal may move in a range during the day with higher crude oil and a weak rupee propping it up, but a stronger dollar overseas was seen capping its gains, analysts said.
“Gold may be mildly bearish,” said Kishore Narne, vice president-commodities at Anand Rathi Commodities. “It would have fallen if it did not have support from crude.”
Crude oil prices, which usually takes gold in tow, remained near an all-time high, raising gold’s appeal as a hedge against inflation.
On the other hand, a stronger dollar on waning worries about the credit market crisis, capped gold’s rise.
Gold usually has an inverse relation with the dollar as the two compete for investment.
The benchmark June gold on the Multi Commodity Exchange of India Ltd (MCX) was seen finding support at Rs11,564 and Rs11,485 per 10 grams, said T. Gnanasekar, director at Commtrendz Research.
June gold may face resistance at Rs11,685 and Rs11,745, Gnanasekar added.
Open interest for June gold was at 7,681 lots, up from 7,448 on Wednesday. Volume the previous day was at 27.09 kg.