Mumbai: India’s gold futures softened on 3 January after touching their highest level overnight since gold futures were launched in 2003, and may consolidate the sharp gains during the day, analyst said.
“It has to take time to stabilize,” said Shailendra Kumar, head of research at Sharekhan Commodities Pvt Ltd. “It may move sideways, but there is a bias on the upside.”
February gold futures on the Multi Commodity Exchange of India Ltd touched a high of 10,920 rupees per 10 grams late on Wednesday, taking cues from overseas markets that also saw record highs above $861 an ounce.
Firm crude oil, geopolitical tensions and chances of an interest rate cut in the U.S. are backing gold’s rise, heightening its appeal as an inflation-hedge.
Another analyst, Si Kannan, associate vice president at Kotak Commodity Services Ltd, said gold may ease with the February contract likely to fall to Rs10,825-10,845 per 10 grams.
Open interest for February gold on MCX was at 14,960 lots, down from 15,246 the previous day. Volume on 2 January was at 60 kg.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:54 a.m.:
Contract Current price Net change
Feb 10,869 -10
Apr 10,931 -8