India gold futures down tracking overseas caution

India gold futures down tracking overseas caution


Mumbai: India’s gold futures were down on Friday, 14 September, tracking cautious overseas markets that waited for a key meeting on US interest rates next week.

October gold was down Rs28 at Rs9,267 per 10 grams on the Multi Commodity Exchange (MCX) at 11:38am. The December contract also lost R28 to Rs9,363.

“I expect some profit booking today even though the overall trend is bullish," said Tejas Parekh, senior research analyst at Motilal Oswal Commodities Broker Pvt Ltd.

Parekh said the October contract on the Multi Commodity Exchange of India Ltd (MCX) may find support at Rs9,260 per 10 grams and later at Rs9,240.

Another analyst at Brics Commodities Pvt Ltd said local investors were also waiting for the outcome of next week’s meeting of the Federal Reserve.

A squeeze in US money markets and signs of deeper housing downturn have raised expectations that the Fed may cut rates by at least 25 basis points on 18 September. Open interest for October gold on MCX was at 9,874 lots, down from the previous day’s 10,009. Volume on Thursday was 22.059 kg.