Indian gold futures ease on weak oil, firm rupee

Indian gold futures ease on weak oil, firm rupee
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First Published: Mon, Jun 16 2008. 12 32 PM IST
Updated: Mon, Jun 16 2008. 12 32 PM IST
Mumbai: Indian gold futures eased on Monday, 16 June, tracking a fall in global oil prices and on a firm rupee, analysts said.
Gold for delivery in August shed Rs7 to Rs12,122 per 10 grams a little before noon on the Multi Commodity Exchange of India Ltd (MCX). The October contract lost Rs9 to Rs12,174.
“The falling crude oil price is pulling down the gold,” said Harish Galipelli, head of research, Karvy Comtrade Ltd.
Oil fell more than half a percent to near $134 a barrel on Monday as Saudi Arabia prepared to push production to its highest rate in decades to help keep pace with demand.
Crude oil and gold move in tandem as the former signals inflation, while the latter is a hedge against rising prices.
There is no big upside seen in the market due to a strong rupee, said an analyst with Motilal Oswal Commodities Broker Pvt Ltd.
The rupee nudged higher, supported by gains in the stock market, which revived hopes for foreign portfolio inflows, but dollar demand from firms checked gains.
Most of India’s gold is imported and a firm rupee makes imports cheaper.
The August contract on MCX is expected to trade in the range of 12,000-12,160 rupees, Karvy’s Galipelli said.
Open interest for August gold on MCX was at 7,528 lots, up from 7,287 the previous session. Volume on Saturday was 992 grams.
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First Published: Mon, Jun 16 2008. 12 32 PM IST
More Topics: Gold | Futures | MCX | Rupee | Oil |