Gold futures ease on strong dollar overseas

Gold futures ease on strong dollar overseas
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First Published: Tue, Apr 28 2009. 01 16 PM IST
Updated: Tue, Apr 28 2009. 01 16 PM IST
Mumbai: India gold futures eased on Tuesday following overseas markets, where a strong dollar pressured the yellow metal even as a weak rupee limited losses, analysts said.
The most watched June contract was 0.80% lower at Rs14,592 per 10 grams at 11:09am, after having gained about 3% in the previous five sessions.
MCX gold ended the previous session 0.6% higher, where Akshaya Tritiya buying supported the yellow metal.
The Indian rupee fell for a second consecutive day on Tuesday, mirroring a broad slide in Asian currencies on worries about the swine flu outbreak.
A weak rupee makes the dollar-quoted yellow metal more expensive.
Investors shifted their attention to a Federal Reserve meeting at a time when the US economy has shown some signs of improvement. Falling oil prices also prompted investors to lock in profit after gold’s recent rally.
The euro slipped 0.1% versus the dollar while the yen climbed to a seven-week peak against the euro after worries the outbreak of swine flu dampened risk appetite.
“Gold may go down to Rs14,500 on firm dollar overseas,” said Pranav Mer, an analyst with India Infoline in Mumbai.
Gold may trade in the range of Rs14,500-14,800, said Abhishek Chauhan, technical analyst with Angel Commodities.
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First Published: Tue, Apr 28 2009. 01 16 PM IST
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