Gold edges lower on stronger rupee

Gold edges lower on stronger rupee

Mumbai: The gold futures edged lower on Friday as rupee gained making the dollar-quoted yellow metal cheaper, analysts said.

Gold may move in a very narrow range of Rs12,945-13,100 for the day, said Gnanasekar Thiagarajan, director at Comtrendz Risk Management. Some bullish bias would prevail in gold for next week on the back of a weaker dollar, said Thiagarajan, adding gold may test the resistance of Rs13,200-13,250 by next week.

Overseas gold was mostly steady on Friday, holding near $845 an ounce amid views that the dollar would remain under pressure given the grim outlook of the US economy, but activity was slow due to the holiday season.

The benchmark February gold last traded lower by Rs58 at Rs13,016 per 10 grams after it gained by more than 2.5% for the last four trading sessions. The rupee edged higher on Friday on expectations the local stock market may open firm, but gains may be pared following the dollar’s gains against some currencies such as the yen.

Open interest for February gold on MCX was at 14,709 lots, down from 14,823 recorded on Wednesday. Volume on Wednesday was 37.5 kgs.

Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:35am.