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Rupee has been on a free fall and this has caused gold, copper and crude oil to hit a new high on Multi Commodity Exchange as these are dollar denominated commodities.
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Rupee saw a drastic fall of 3% in today's trade and closed at Rs 68.80 per dollar on the back of heavy month end dollar demand from oil companies and importers.'Further, outflow of foreign funds from equities and debt coupled with worries over the Current Account Deficit (CAD) acted as a negative factor for the currency. However, selling of dollars from exporters and Reserve bank of India (RBI) at 68.75-levels couldn’t provide respite to fall in the currency. ,' Angel Commodities said in a report.
Silver is also at a 8 months high as it is following the movement of base metals as well as the movement in gold. Silver on MCX hit a high of Rs 59,942 per kilogram.
Copper, gold and crude oil for second day in a row have hit a high on the Indian exchanges. Copper in day trade hit an all time high of Rs 512.65 per kilogram, crude oil hit a high of 7784 per barrel while gold hit a high of Rs 35,074 per 10 grams.
Base metals group was trading on the lower side today on the back of stronger dollar coupled with weak markets internationally. The fall however remained limited to favorable economic data from the Euro Zone and UK as well as marginal decline in inventories. LME Copper prices slipped 0.6% as a result of strength in the dollar.
'Positive economic data from the Euro Zone and UK prevented further downfall. Depreciation in the rupee supported a 0.5% gain in prices on the MCX,” Angel Commodities said in a report.
“Going forward, the immediate short term target for gold remains $1450-1460 an ounce at COMEX , in case of a convincing close above its crucial hurdle of $1425 an ounce. The current momentum can lead prices at domestic bourses towards Rs 35,000 per 10gms at MCX in short term and eventually Rs 37000 per 10gm in medium term,' said Sachdeva, assistant vice president & incharge- metals, energy and currency research, Religare Securities.
