Gold futures rebound, up 1.3% as rupee plunges to new low

Gold for delivery in December shot up by 1.2%

 

After remaining weak in early trade, gold futures prices recovered by 1.30% to Rs 31,214 per 10 grams today, largely on the back of of depreciating rupee which plunged to a fresh low.

At the Multi Commodity Exchange, gold for delivery in October recovered sharply by Rs 402, or 1.30%, to Rs 31,214 per 10 grams after dipping to Rs 30,625 in business turnover of 12,268 lots.

Similarly, gold for delivery in December shot up by Rs 370, or 1.20%, to Rs 31,102 per 10 grams in 632 lots. It touched a low of Rs 30,560.

Market analysts said sharp rise in gold futures to fresh positions created by speculators after rupee depreciated to record low of 64.53 a dollar before recovering partially to close at 64.11, making imports costlier.

They said, however, weakness in the precious metals in the global market ahead of the US Federal Reserve releases minutes from its last meeting that may signal when policymakers to slow stimulus, capped the gains.

Globally, gold fell 0.60% to $1,363.29 an ounce in London in early trade today.