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| Gold futures fall 2.3% on stronger rupee |
| Press Trust of India / New Delhi May 18, 2009, 14:03 IST |
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Gold prices in the futures market today fell by 2.30 per cent at Rs 14,408 per 10 gram in early trade as rupee hardened against the dollar due to a surge in the equity markets following the outcome of the Lok Sabha polls.
At 1230 hrs, gold for delivery in June, the most active contract, was trading down by 2.30 per cent at Rs 14,408 per 10 gram at the MCX platform. July gold also slipped by 2.30 per cent at Rs 14,402 per 10 gram.
"Gold prices are falling because of strong rupee. Otherwise, the global prices are ruling steady at $931 per ounce," Hyderabad-based Commodity brokerage Karvy Comtrade Research Head Harish G told PTI.
A strong rupee makes the dollar denominated asset cheaper, he said, adding the rupee may further appreciate due to an increase in investment by foreign institutional investors (FIIs) on account of bullish equity market.
Rupee began to appreciate taking cues from Sensex and Nifty, which hit the upper circuit for the first time today in the history of Indian stock market.
At the spot market, rupee rose by 130 paise at 48.10 against the dollar today, over its previous close of 49.40.
A similar trend was seen in the currency futures at the National Stock Exchange, where the most-active May contract of rupee rose by 144 paise at 48.11.
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