Indian gold futures slightly higher on weaker rupee November 30, 2008
Posted by dhirendra1972 in Commodity Market, Grams, Tracks Oil, Turmoil.Tags: Indian Gold, Inflation
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Good morning friends. I have read one article about Indian gold and in spite of terrorism happened to Mumbai Indian gold is slightly higher on a weaker rupee.
Indian gold futures edged higher on Friday in the first day of trading since the militant attacks in Mumbai, as a weaker rupee supported prices.
Analysts said the Organization of Petroleum Exporting Countries’ (OPEC) meeting this weekend would give gold new direction as it often tracks oil due to the metal’s role as a hedge against inflation.
“A fresh trend will emerge only by next week,” said Subodh Gupta, analyst at Anand Rathi Commodities.
The rupee weakened against the dollar as it resumed trade after financial and commodity markets were shut on Thursday as the attacks paralysed life in the country’s financial hub. On Friday, gunmen were still holed up in two luxury hotels.
A weaker rupee makes gold more expensive locally as most of the metal is imported into India and paid for in the US currency.
Analysts said the turmoil in Mumbai and a long weekend owing to the Thanksgiving holiday on Thursday would keep trading volumes low.
“We expect gold to remain sideways,” said Aurobinda Prasad, senior technical analyst at Karvy Comtrade Ltd.
“People are there in the market but won’t take much positions until the direction emerges.”
Analysts said gold prices had not been influenced by the attacks as the metal generally reacts only when faced with larger international crises and possible disruptions to oil supplies.
The benchmark December gold on the Multi Commodity Exchange of India Ltd (MCX) was expected to trade within 12,800 rupees per 10 grams ($256) and 13,150 rupees ($263), said Prasad.
Open interest for December gold was at 7,601 lots, a little down from 7,718 on Wednesday.
