Gold futures fall for a fifth day, taking cue from global markets

Gold futures fall for a fifth day, taking cue from global markets
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First Published: Thu, Dec 04 2008. 11 42 PM IST
Updated: Thu, Dec 04 2008. 11 42 PM IST
Mumbai / Singapore: Indian gold futures fell for a fifth consecutive session on Thursday taking a cue from global markets, analysts said.
“We are still bearish on gold,” said Devarsh Vakil, manager, research, at Ahmedabad-based Anagram Capital Ltd.
Gold slipped on Thursday as the dollar gained against the euro and worries about demand weighed on oil, driving investors away from bullion ahead of the release of US non-farm payrolls data later this week.
Adding to the decline would be a firm rupee, Vakil added. A stronger rupee makes gold imports cheaper and brings down domestic prices.
The February gold contract may be confined to a Rs12,385 and Rs12,580 range, said Naveen Mathur, head of commodities at Angel Commodities Broking Pvt. Ltd.
Open interest for February gold on MCX was at 11,731 lots, up from 11,641 a day earlier. Volume on Wednesday was 53.04 kg.
Gold slipped on Thursday as the dollar gained against the euro and worries about demand weighed on oil, driving investors away from bullion.
Fears of a severe global recession have curbed investors’ appetite for risky assets, while recent terror attacks in India that killed at least 183 people failed to stir up safe-haven buying. Gold was 25% below March’s record of $1,030.80 (Rs51,333 today).
“It seems to me that gold has almost been pushed to the side a little bit by investors at the moment. I suspect institutional investor interest is probably pretty tepid,” said David Moore, commodities strategist at Commonwealth Bank of Australia in Sydney.
“Gold hasn’t performed as some people thought it might in the current environment.”
Gold was trading at $766.00 an ounce around 7pm, after hitting an intra-day high of $775.35.
Gold posted its biggest daily percentage fall in almost eight weeks on Monday, on falling oil and the firm dollar.
It was struggling to sustain gains since falling to a 13-month low of $680.80 in late October. A rebound to a six-week high around $830 late last month was met by heavy selling.
Platinum was trading at $796.50 an ounce. Platinum has more than halved since spiking to a lifetime high of $2,290 in March. REUTERS
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First Published: Thu, Dec 04 2008. 11 42 PM IST
More Topics: Gold | Dollar | Commodity | India | US |