Gold futures turn soft as demand ease

Gold futures turn soft as demand ease

Mumbai: India’s gold futures were softer, after hitting a new high late on Thursday on the back of firm overseas markets, as high festive-season demand seen last week eased in the world’s biggest market.

Gold futures opened slightly down on Friday on the Multi Commodity Exchange of India Ltd (MCX) after striking a new high at 16,050 rupees ($345.5) per 10 grams the previous day.

Gold’s previous record was Rs16,048 on 13 October.

On the continuation chart, gold futures traded at Rs16,006, down 0.05% from Thursday’s close.

On Friday the local price rose on cues from the international markets where the metal was firm owing to a weak outlook for the dollar with which it has an inverse relationship.

A drop in the rupee against the dollar on Thursday, also helped push local gold to its new high.

Physical demand was weaker after heavy buying last week for the Dhanteras and Diwali festivals.

“Demand is low due to the high prices and festive demand of Diwali is over," said a senior dealer in a private bank.

“It can come back if the rupee remains stable or appreciates to cap gold prices."