Business Standard

Indian gold futures seen gaining further

Related News

Indian futures are likely to extend gains for another week, helped by a weaker dollar overseas, analysts said.

The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.24 percent higher at 29,976 rupees per 10 grams at 1158 GMT.

"Both gold and silver are moving in line with risky assets and U.S. payroll numbers have underpinned sentiment for precious metals as the dollar fell across the board," said Gnanasekar Thiagarajan, director with Commtrendz Research.

Dollar and gold often move in opposite directions as the two compete for funds globally.

The euro eased on Monday after making significant gains, with many investors wary of buying the currency on caution about how effective action pledged by European policymakers to resolve the euro zone crisis would be.

Buying is advised on dips within a 29,650-29,670 range, with a stop loss of 29,500, targeting 30,100, said Thiagarajan.

However, slack physical demand ahead of the festival and wedding seasons could limit the upside.

Physical demand has already halved in India, the world's biggest consumer in 2011, due to a doubling of import duty to 4 percent. Forecasts of poor rains are likely to further threaten demand from rural areas, which contribute to 60 percent of the country's gold imports.

Silver could also rise in tandem with the yellow metal.

Silver for September delivery on the was flat at 53,260 rupees per kg.

Buying is advised on dips to 53,000, with a stop loss of 52,700, targeting 53,900, said Thiagarajan.

 

Read more on:   
|
|
|

Read More

Silver falls 0.32% on weak global cues

Silver prices drifted by Rs 191 to Rs 58,782 per kg in futures trade today as speculators offloaded their positions, tracking a weak global trend.

Quick Links

 

Market News

IT, pharma shares outperform for the fourth straight month

CNX Pharma, CNX IT up 6% and 8% respectively during September, as against CNX Nifty's 0.1% gain

Lacklustre listing for Shemaroo Entertainment

Shares close near issue price on debut after rising 6%

FMC Chairman Ramesh Abhishek may get extension

The government might give the current Forward Markets Commission chairman, Ramesh Abhishek, another extension of three months as the ...

Recovery process gathers momentum at NSEL

MPID Court directs asset sale of NSEL defaulter Metkore worth around Rs. 95 crore

Trading volume declines ahead of holidays

Indian market will remain shut between Oct 2 and Oct 6 on account of holidays and will re-open on Oct 7

Back to Top