Gold seen falling past 1-month low

MUMBAI Mon Dec 10, 2012 4:00pm IST

A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh November 11, 2012. REUTERS/Ajay Verma/Files

A salesgirl shows a gold necklace to customers at a jewellery showroom in Chandigarh November 11, 2012.

Credit: Reuters/Ajay Verma/Files

Related Topics

MUMBAI (Reuters) - Indian gold futures are likely to fall past their lowest in a month this week weighed by expectations of a stronger rupee and as investors resort to year-end profit-taking, with traders also eyeing the Federal Reserve. Silver may rise.

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. Investors await a U.S. Federal Reserve policy meeting on Tuesday and Wednesday, after which the Reserve Bank of India is expected to announce fresh bond purchases of $45 billion a month to replace Operation Twist.

The actively traded gold for February delivery on the Multi Commodity Exchange (MCX) was 0.31 percent higher at 31,422 rupees per 10 grams, after hitting a high of 31,439 rupees, the highest since December 5. The yellow metal had gained about 15 percent since the start of the year.

"Gold could be weak on the back of an appreciating rupee and profit-taking in the international markets," said Gnanasekar Thiagarajan, director of Commtrendz Research.

Selling is advised in MCX gold at 31,575-600, with a stop loss at 31,800, targeting 31,250, said Thiagarajan.

Silver futures could rise. Silver for immediate delivery on the MCX was 0.73 percent higher at 63,038 rupees per kg.

Buying is advised at 62,200-62,250 for a target of 63,400/63,900, with a stop loss of 61,600 rupees, said an analyst with Karvy Comtrade in Hyderabad.

(Reporting by Siddesh Mayenkar; Editing by G.Ram Mohan)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

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