Gold futures fall on profit-taking

Gold futures fall on profit-taking
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First Published: Fri, May 23 2008. 01 13 PM IST
Updated: Fri, May 23 2008. 01 13 PM IST
Reuters
Mumbai: Indian gold futures fell on profit-taking and tracking overseas markets, analysts said. The futures contracts for June were down by Rs45 and stood at Rs12,685 while the August contracts were down by Rs12,717.
“It’s a correction after the long rally,” said Somnath Dey, in-charge, metals and energy research, Religare Commodities Ltd.
The benchmark June contract gained 7.7% in the last seven trading sessions.
Overseas gold slipped but dug in its heels around $915, taking a breather after profit-taking knocked crude oil prices off an all-time high and the dollar steadied.
A recovery in rupee also weighed on the sentiment, said Aurobinda Prasad, an analyst with Karvy Comtrade Ltd.
The partially convertible rupee pushed away from 13-month lows in early deals after oil dipped from record highs and stock market gains raised hopes of capital inflows.
Most of India’s gold is imported and a strong rupee makes imports cheaper.
Open interest for June gold on MCX was at 7,070 lots, up from 7,015 the previous session. Volume on Thursday was 50.5 kg.
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First Published: Fri, May 23 2008. 01 13 PM IST