Mumbai: India’s gold futures climbed on Wednesday, 8 August, even though overseas markets were slightly down, as the rupee weakened against the dollar baffling investors, commodity brokerages said.
“The rupee is of primary importance now,” said Amar Singh, head of commodity research at Angel Commodities Broking Pvt. Ltd. “We could see some more upside in gold.”
The rupee, that affects the import-driven gold market, fell 1% to its lowest in over a month against the dollar after policy makers tightened rules on foreign borrowing.
Analysts said this has cautioned investors who have been waiting for a clear trend to emerge after the metal’s more or less sideways move this week.
“People are interested in buying, but gold is still not showing any definite trend,” said Harish Galipelli, head of research at Karvy Comtrade Ltd.
Galipelli said he expected the near-month contract on the Multi Commodity Exchange of India Ltd. (MCX) to aim for 8,960 rupees per 10 grams.
Open interest for the near-month contract — October — on MCX was at 8,204 lots, up from 8,082 the previous day. Volume on Tuesday was at 19.47 kg.