India gold futures fall on weak oil prices

India gold futures fall on weak oil prices
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First Published: Tue, Apr 01 2008. 12 24 PM IST
Updated: Tue, Apr 01 2008. 12 24 PM IST
Mumbai: Indian gold futures fell on Tuesday on weak crude oil prices and fears of slowdown in investments in the metal, analysts said.
“It’s follow-through selling from Monday...weak oil prices are also pulling down the market,” said Shailendra Kumar, head of research, Sharekhan Commodities Pvt Ltd.
The June contract on the Multi Commodity Exchange of India Ltd (MCX) fell Rs136 to end at Rs11,891 on Monday.
Oil prices hovered below $102 a barrel on Tuesday, as a forecast of lower US gasoline stocks capped overnight hefty losses, triggered by a recovery in Iraqi crude exports.
Lower crude oil prices reduce inflationary fears, which slows down fresh buying in the yellow metal.
The sentiment is bearish in short-term after it hit an all-time high last month, said Kishore Narne, vice president, Anand Rathi Commodities.
Gold struck a record of $1,030.80 an ounce on 17 March but has since struggled, with a sell-off in commodities pushing down the prices.
Traders will watch US manufacturing data to gauge the health of the US economy and further course of markets, analysts said.
Open interest for June gold on MCX was at 6,462 lots, up from 6,250 the previous session. Volume on Monday was 34.3 kg.
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First Published: Tue, Apr 01 2008. 12 24 PM IST
More Topics: Markets | India | Gold | Crude Oil | Fall |