Gold futures fall on weak foreign markets

Gold futures fall on weak foreign markets
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First Published: Tue, Sep 16 2008. 11 35 AM IST
Updated: Tue, Sep 16 2008. 11 35 AM IST
Reuters
Mumbai: India’s gold futures were down on Tuesday on the Multi Commodity Exchange of India Ltd (MCX) as safe-having buying in the metal faded overseas and markets waited for the outcome of a US policy setting meeting.
“Gold may bounce back on the dollar’s weakness,” said Subodh Gupta, analyst at Anand Rathi Commodities.
“Don’t be surprised if the US cuts rates as a last resort to save the financial system,” he added.
The US Federal Open Market Committee will meet later in the day and a statement is expected around 11:45 p.m.
The financial turmoil in the US markets deepened on Monday with news of investment banker Lehman Brothers filing for bankruptcy, making gold rise initially on safe-haven buying.
A rate cut, if it happens, may weaken the dollar further overseas and give the metal a leg up as the US currency and the metal have an inverse relation as they compete for funds.
Open interest for October gold on the MCX was at 10,925 lots, higher than the previous day’s 10,712. Volume was at 79.319 kg on Monday.
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First Published: Tue, Sep 16 2008. 11 35 AM IST
More Topics: India | Gold | Silver | Bullion | MCX |