Mumbai: Indian gold futures hovered just above Rs10,000 per 10 grams on Friday, 16 November, a day after briefly trading below the psychological level amid volatile foreign markets that moved to global credit market fears, analysts said.
Gold for December delivery was trading Rs 8 up at Rs10,038 per 10 grams at 11:14am on the Multi Commodity Exchange of India Ltd (MCX). February gold was up Rs 3 at Rs10,120.
The near-month futures on the Multi Commodity Exchange of India Ltd rebounded on bargain hunting after after seeing a three-week low the previous day at Rs9,925 per 10 grams.
“Many people who couldn’t participate in the earlier rally are back in the market,” said T. Gnanasekar, director at Commtrendz Research.
Gnanasekar said the December contract on the MCX could trade between 9,915 rupees and 10,250 rupees during the day.
A senior analyst, Pranith Tunguri at Indiabulls Commodities Pvt Ltd, saw prices dipping to 9,850 rupees if 9,950 was broken.
Analysts warned of volatility ahead of the year ending as investors are likely to be eager to see higher levels and thereafter book profits before closing their books.
December gold on MCX had an open interest of 10,216 lots, higher than 10,204 on Thursday. Volume on Thursday was at 61.024 kg.