India gold, silver seen rising this week

MUMBAI Tue Feb 21, 2012 7:26pm IST

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008. REUTERS/Parth Sanyal/Files

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008.

Credit: Reuters/Parth Sanyal/Files

Related Topics

MUMBAI (Reuters) - India gold futures are likely to rise this week on expectations of global dollar weakness and higher crude oil prices, analysts said.

The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.42 percent higher at 28,275 rupees per 10 grams on Tuesday.

Buying is advised in gold on dips to 28,050 rupees, for a target of 28,500 rupees, said Gnanasekar Thiagarajan, director with Commtrendz Research.

"Higher crude oil prices and a weaker dollar are supportive for the precious metals complex," said Thiagarajan.

Dollar and gold often move in opposite direction as the two compete for funds as alternative assets.

The euro held onto gains on Tuesday due to relief over Greece's securing of a rescue deal to avoid a chaotic default, but sceptical investors were looking to sell into a bounce on doubts whether it makes the country's debt burden any more manageable.

Silver could also extend gains this week following the yellow metal.

"Buy silver on dips to 55,900 rupees for a target of 57,500 rupees," said Thiagarajan.

Silver for March delivery on the MCX on the MCX was 0.43 percent higher at 56,560 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Subhadip Sircar)

FILED UNDER:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage