Gold eases from 1-month high, traders seek more

Price falls not enough for traders seeking to stock up for upcoming festival season

Indian futures eased from their highest level in a month, weighed by a stronger rupee, but price falls were not enough for traders seeking to stock up for the upcoming festival season.

* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.27 percent lower at 30,116 rupees per 10 grams at 0932 GMT, easing from the previous day's high of 30,325 rupees, its highest level since June 28.

* The rupee, which traded stronger, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "Demand is still poor... wholesalers are selling gold at a discount," said Mayank Khemka, managing director, Khemka Group of Companies. "I doubt whether demand will pick up and could pick up only if prices fall to 28,000 rupees."

* Physical demand has been subdued so far this year and is expected to remain dull.

* The festival season starts in August in India, the world's biggest gold buyer in 2011, and continues till November.

* Traders are also eyeing the monsoon forecast for the second half of the June-September season, which is vital to gold demand in rural areas.

* Monsoon rains, which have been below normal so far, are vital to the farm economy in rural areas, which account for 60 percent of gold demand.

* September on the was 0.36 percent lower at 53,778 rupees per kg.

 

image
Business Standard
177 22
Business Standard

Gold eases from 1-month high, traders seek more

Price falls not enough for traders seeking to stock up for upcoming festival season

Reuters  |  MUMBAI  



Indian futures eased from their highest level in a month, weighed by a stronger rupee, but price falls were not enough for traders seeking to stock up for the upcoming festival season.

* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.27 percent lower at 30,116 rupees per 10 grams at 0932 GMT, easing from the previous day's high of 30,325 rupees, its highest level since June 28.

* The rupee, which traded stronger, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "Demand is still poor... wholesalers are selling gold at a discount," said Mayank Khemka, managing director, Khemka Group of Companies. "I doubt whether demand will pick up and could pick up only if prices fall to 28,000 rupees."

* Physical demand has been subdued so far this year and is expected to remain dull.

* The festival season starts in August in India, the world's biggest gold buyer in 2011, and continues till November.

* Traders are also eyeing the monsoon forecast for the second half of the June-September season, which is vital to gold demand in rural areas.

* Monsoon rains, which have been below normal so far, are vital to the farm economy in rural areas, which account for 60 percent of gold demand.

* September on the was 0.36 percent lower at 53,778 rupees per kg.

 

RECOMMENDED FOR YOU

Gold eases from 1-month high, traders seek more

Price falls not enough for traders seeking to stock up for upcoming festival season

Indian gold futures eased from their highest level in a month, weighed by a stronger rupee, but price falls were not enough for traders seeking to stock up for the upcoming festival season.

Indian futures eased from their highest level in a month, weighed by a stronger rupee, but price falls were not enough for traders seeking to stock up for the upcoming festival season.

* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.27 percent lower at 30,116 rupees per 10 grams at 0932 GMT, easing from the previous day's high of 30,325 rupees, its highest level since June 28.

* The rupee, which traded stronger, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "Demand is still poor... wholesalers are selling gold at a discount," said Mayank Khemka, managing director, Khemka Group of Companies. "I doubt whether demand will pick up and could pick up only if prices fall to 28,000 rupees."

* Physical demand has been subdued so far this year and is expected to remain dull.

* The festival season starts in August in India, the world's biggest gold buyer in 2011, and continues till November.

* Traders are also eyeing the monsoon forecast for the second half of the June-September season, which is vital to gold demand in rural areas.

* Monsoon rains, which have been below normal so far, are vital to the farm economy in rural areas, which account for 60 percent of gold demand.

* September on the was 0.36 percent lower at 53,778 rupees per kg.

 

image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

  • Today's picks: 25 August 2016
  • Brokerages remain upbeat on corporate earnings growth Brokerages remain upbeat on corporate earnings growth

STOCK WATCH

Company Price() Chg(%)
GVK Power Infra. 6.64 7.79
Aegis Logistics 126.00 7.46
Rain Industries 47.80 6.94
KSK Energy Ven. 29.10 6.59
Syngene Intl. 463.00 6.51
> More on BSE Gainers
Company Price() Chg(%)
Puravankar.Proj. 50.00 7.64
GVK Power Infra. 6.60 7.32
Aegis Logistics 126.00 7.19
Syngene Intl. 464.50 6.78
KSK Energy Ven. 29.15 6.78
> More on NSE Gainers
Company Price() Chg(%)
Astrazeneca Phar 1070.00 -6.18
Sequent Scien. 138.85 -4.27
Deepak Fert. 211.75 -3.22
Muthoot Finance 328.75 -2.45
Monsanto India 2378.05 -2.41
> More on BSE Gainers
Company Price() Chg(%)
Astrazeneca Phar 1068.20 -6.17
Deepak Fert. 211.80 -3.09
Mayur Uniquote 432.65 -2.70
Monsanto India 2378.10 -2.57
Muthoot Finance 328.70 -2.35
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard