Mumbai: India’s gold futures were up on Friday, 28 September, tracking overseas markets that advanced near a 28-year high with a weaker rupee adding to the gains, and analysts in commodity brokerages said a further upside was likely.
October gold was trading Rs24 up at Rs9,408 per 10 grams at 10:32am on the Multi Commodity Exchange of India Ltd (MCX). The December contract was up Rs25 to Rs9,497.
“The dollar is seeing a prolonged weakness... gold is likely to be up today,” said an analyst at IL&FS Investsmart Commodities Ltd.
“There may not be much winding off of positions as the current quarter ends as gold is looking firm,” the analyst added.
Another analyst at Emkay Commotrade Ltd said the December contract on the Multi Commodity Exchange of India Ltd is likely to find support at 9,463 rupees per 10 grams and may aim for 9,530-9,540 rupees.
Overseas gold saw a fresh rally as the slump of the dollar against the euro and rising energy prices prompted buying. Locally, the rupee weakened slightly against the dollar that helped local gold prices stay firm.