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Indian gold futures track weak crude, more falls seen

Indian gold futures track weak crude, more falls seen
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First Published: Thu, May 15 2008. 12 48 PM IST
Updated: Thu, May 15 2008. 12 48 PM IST
Mumbai: India’s gold futures fell on Thursday, 15 May, tracking a lower crude oil and a stronger dollar overseas which could bring more falls in the day, analysts said.
At 11:10am, gold for delivery in June was down Rs4 to Rs11,814 per 10 grams on the Multi Commodity Exchange of india Ltd (MCX). The August contract lost Rs7 to Rs11,864.
“Crude oil can be expected to continue to correct (and) that will ease off pressure on inflation and gold will thus give up more gains,” said K N Rahaman, deputy research head at Way2Wealth Securities Ltd.
Crude oil eased on rising US stocks, while the dollar strengthened on tame consumer inflation data the previous day.
Gold generally moves in tandem with crude as the latter signals inflation, while gold is a good hedge against it. It generally has an inverse relationship with the dollar as the two compete for investments.
June gold on the Multi Commodity Exchange of India (MCX) is seen trading within 11,650 rupees and 11,880 rupees per 10 grams, said an analyst from Anand Rathi Commodities.
Open interest for June gold was at 7,488 lots, up from 7,392 on Wednesday. Volume on the previous day was at 32.76 kg.
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First Published: Thu, May 15 2008. 12 48 PM IST