Mumbai: India’s gold futures were up on 3 July due to a weaker rupee and stable foreign markets, as persisting inflationary fears kept the outlook bullish, analysts said.
“The dollar is at a two-month low and crude oil looks set to rise more. I expect gold to be buoyant,” said Devarsh Vakil, manager - research at Anagram Comtrade Ltd.
Overseas gold, the main guide to the local market, was stable near a 10-week high as crude oil struck a fresh all-time high and the dollar remained near a two-month low.
Gold generally moves in tandem with crude oil as the latter signals inflation while the metal resists it. But gold generally has an inverse relationship with the dollar as the two compete for funds.
The benchmark August gold on Multi Commodity Exchange of India Ltd (MCX) was seen trading within Rs13,000 and Rs13,350 per 10 grams, said Debjyoti Chatterjee, associate vice president at MAPE ADMISI Commodity Research.
Silver futures were also seen as bullish on the back of gold, with the September silver likely to aim at Rs26,200 per kilogram, from its current level at RS25,929, an analyst said.