Mumbai: India’s gold futures were up on the Multi Commodity Exchange of India Ltd (MCX) on Wednesday tracking higher foreign markets with a weaker rupee adding to the gains, analysts said.
Gold for delivery in December gained Rs66 to Rs13,145 per 10 grams at around 10:38am, while the February contract rose Rs66 to Rs13,246.
“Because of the rupee, the trend is sideways-to-up,” said an analyst at Karvy Comtrade Ltd. “In the evening there is a lot of data that could be supportive for gold.”
The market would be noting the outcome of the Producer Price Index, retail sales and the Beige Book that has a summary of economic conditions in the US later in the day. Foreign gold, that guides the local market, was higher with investors buying the metal in the face of stock market declines and renewed fears of a recession.
In the local market, the rupee weakened against the dollar on falls in the stock market. The rupee’s value against the dollar determines the landed cost of precious metals as most of it is imported and paid for in the US currency.
The benchmark December gold is expected to trade within Rs13,300 per 10 grams and Rs13,600, said Somnath Dey, incharge of metals and energy research at Religare Commodities Ltd. December silver is expected to trade within Rs18,500 per kg and Rs19,000, Dey added.
December silver traded at Rs18,755.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:38 a.m. <0#MAU:>:
Contract Current price Net change
December 13,145 66
February 13,246 66
For a technical look at international spot gold, double click www.reutersindia.net/gold.htm)
(Reporting by Ruchira Singh; editing by Sunil Nair) REUTERS