Mumbai: Indian gold futures were lower on the Multi Commodity Exchange of India Ltd (MCX) on Tuesday, 1 July, as overseas markets slipped on profit taking from Monday’s 5-week high, but analysts said it retained the strength to rebound.
Gold for delivery in August lost Rs32 to Rs12,847 per 10 grams on the MCX at 10:40am. The October contract shed Rs30 and was trading at Rs12,951.
“Gold is still bullish mainly because of crude oil and the weaker rupee,” said Somnath Dey, incharge-metals and energy research at Religare Commodities Ltd.
Crude oil, which mainly guides gold, was up signalling more inflationary fears that could boost the yellow metal, Dey said.
Also, the rupee was at a one month low versus the dollar accentuating gold’s fall. The strength of the local currency determines gold prices as most of the metal is imported and paid for in dollars. The benchmark August gold was seen trading within Rs12,750-12,900 per 10 grams, said Harish Galipelli, head of research at Karvy Comtrade Ltd.
Open interest for August gold was at 8,788 lots, up from 8,667 on Monday. Volume on the previous day was at 49.28kg.