Gold futures recover on weak rupee

Gold futures recover on weak rupee
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First Published: Fri, Feb 20 2009. 12 20 PM IST
Updated: Fri, Feb 20 2009. 12 20 PM IST
Mumbai: India’s gold futures recovered in early trade on Friday on a weak rupee, after having struck a new all-time high in the previous session, analysts said.
However, they added, gold might witness slight profit-taking later in the session after gaining more than 6% in the last three days.
“We might see a slight profit-taking to 15,450 levels today,” said Devarsh Vakil, manager-research with Anagram Capital in Ahmedabad.
“High volatility would be seen in gold prices in the short-term,” said Subodh Gupta, an analyst with Anand Rathi Commodities.
The benchmark gold April contract was 0.56% higher at Rs15,542 per 10 grams at 11:35 a.m., after having struck a new record-high of Rs15,706 in the previous session. The contract closed 0.7% lower at Rs15,455 on Thursday.
A weaker rupee makes the dollar-quoted imported gold expensive. The rupee dropped on Friday, weighed down by losses in the share market and a stronger dollar overseas, but volume was thin following a one-day strike by the Reserve Bank of India employees.
“Gold may remain choppy for the day,” said Somnath Dey, in-charge of metals and energy research at Religare Commodities in Delhi.
Selling is recommended at Rs15,560 with a stop loss of Rs15,660 and with a target of 15,300, added Religare’s Dey.
Open interest for April gold on MCX was at 20,626 lots, up from 19,649 a day earlier. Volume on Thursday was 64.89 kg.
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First Published: Fri, Feb 20 2009. 12 20 PM IST