Gold futures slightly lower on strong rupee

Gold futures slightly lower on strong rupee

Mumbai: India gold futures were slightly lower on Monday weighed by a strong rupee, which makes the dollar-denominated asset cheaper, analysts said.

The most-traded October contract was 0.16% lower at Rs14,844 per 10 grams at 10:58am.

The Indian rupee rose from a one-week low hit in the previous session as a rally in Asian shares kindled hopes of foreign fund inflows into local stocks.

“We expect lacklustre trade in gold till the statement from FOMC on Wednesday," said Debjyoti Chatterjee, associate vice-president with ADMISI Commodities.

Gold may trade in the range of Rs14,750-15,000, said Chatterjee.

The policy-setting Federal Open Market Committee (FOMC) will meet on Tuesday and Wednesday, and central bankers are expected to hold the overnight fed funds rate in a range between zero and 0.25%.

“Gold may trade sideways to down and may move in the range of Rs14,750-14,950," said Abhishek Chauhan, technical analyst, Angel Commodities.

Open interest for October gold on MCX was at 13,855 lots, down from 14,113 a day earlier. Volume on Saturday was 0.69 kg.