Mumbai: India’s gold futures were higher on Monday tracking foreign markets that moved up on bargain hunting after last week’s severe falls, with a slightly stronger rupee capping the gains, analysts said.
Gold for delivery in December was up Rs184 to Rs12,757 per 10 grams at around 11am on the Multi Commodity Exchange of India Ltd (MCX). December silver gained Rs355 to Rs17,566 a kilogram
“The trend is on the upside,” said Debjyoti Chatterjee, associate vice-president at MAPE ADMISI Commodity Research. “There are no major economic indicators for the day, so it will follow the currencies.”
Foreign gold, which guides the local markets, was up on a bounce back in crude oil on expectations of production cuts, and a fall in the dollar amid fears of a recession.
Gold generally has an inverse relation with the US currency as the two compete for funds. But gold usually follows crude oil as the latter signals inflation, while the metal negates it. The benchmark December gold on the Multi Commodity Exchange of India Ltd (MCX) is expected to trade within Rs12,500 per 10 grams and Rs12,850, Chatterjee said.
December silver <MSVZ8> on the MCX could target 18,000 rupees per kg provided it trades above 17,600 rupees during much of the morning session, Chatterjee added.
Following were prices on the Multi Commodity Exchange of India Ltd. at 11:10 a.m. <0#MAU:> <0#MSV:>:
Contract Current price Net change
December gold 12,757 184
December silver 17,566 305
(Reporting by Ruchira Singh; Editing by Prem Udayabhanu) REUTERS