Indian gold futures down, stronger rupee aiding fall

Indian gold futures down, stronger rupee aiding fall
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First Published: Mon, Jun 02 2008. 12 24 PM IST
Mumbai: India’s gold futures were lower on the Multi Commodity Exchange of India Ltd (MCX) on Monday, 2 June, as softer overseas markets and a stronger rupee in the locally weighed them down, analysts said.
Gold for June delivery was down Rs102 to Rs12,097 per 10 grams at around 11:08am on the Multi Commodity Exchange of India Ltd. August gold lost Rs95 to Rs12,111.
“The overall sentiment is weak,” said an analyst at IL&FS Investsmart Commodities Ltd.
Overseas gold eased as the dollar strengthened ahead of a slew of US economic indicators this week and crude oil remained steady after a tropical storm weakened.
In the local market the rupee rose to a two-week high after the central bank said it would provide foreign exchange to oil refiners that could reduce demand for dollars.
A stronger rupee makes gold imports cheaper in a country where almost all the metal used is bought from overseas.
August gold on the MCX was seen trading within Rs12,069 and Rs12,280 per 10 grams, said Vikas Vaid, assistant vice-president at Asit C. Mehta Commodity Services Pvt Ltd.
August gold had an open interest of 6,460 lots, down from 6,637 on Saturday. Volume in the previous session was at 1.74 kg.
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First Published: Mon, Jun 02 2008. 12 24 PM IST
More Topics: Gold | Futures | MCX | Rupee | Dollar |