Indian gold rises on foreign mkts, further gains likely

Indian gold rises on foreign mkts, further gains likely


Mumbai: India’s gold futures were up on Wednesday, 26 September, tracking higher overseas markets and commodity brokerages said more upsides are likely as a weaker dollar overseas may continue to fuel the metal’s gains. “There is an upward bias as the euro looks strong (against the dollar) and crude oil has stabilized, said Safdar Golwala, analyst at Emkay Commotrade Ltd.

October gold was up by Rs7 at Rs9,393 per 10 grams at 11am on the Multi Commodity Exchange. The December contract rose by Rs9 to Rs9,488.

Gold prices usually take support from crude oil prices, while it has an inverse relationship with the dollar.

Another analyst at IL&FS Investsmart Commodities Ltd. said if the U.S. durable goods orders expected later is weak, gold may rise more, especially as Tuesday’s consumer confidence and home sales data showed weakness.

The IL&FS analyst said October gold on the Multi Commodity Exchange of India Ltd. may aim for 9,420-9,440 rupees per 10 grams.

However, a stronger rupee against the dollar, may mute gold’s gains, the analysts added.