Gold futures ease from eight-month high
MUMBAI (Reuters) - Gold futures eased from their highest level in eight months on Tuesday on profit-taking as the rupee came off its early low and overseas markets fell.
* At 2:47 p.m., the actively traded gold contract for October delivery on the Multi Commodity Exchange (MCX) was 1.83 percent lower at 30,595 rupees per 10 grams, after hitting a high of 31,278 rupees in the last session, the level last seen on December 18.
* Technical indicators show highly overbought conditions, leading to profit-booking, said Gnanasekar Thiagarajan, director with Commtrendz Research.
* Thiagarajan said the outlook was negative for gold prices on a weekly basis, with the U.S. Fed minutes and subsequent news of tapering off likely to dent gold prices.
* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Silver contract for September delivery on the MCX was 2.4 percent lower at 49,988 rupees per kg.
* Overseas silver slid nearly 4 percent, falling a second straight session after its biggest rally in five years, as worries over the U.S. stimulus outlook and technical selling dragged it lower and gold followed.
* In the physical market, gold traders awaited imports to re-start ahead of the key festivals and weddings next month.
* A resumption of imports would ease tight domestic supply and prices ahead of a festival and wedding season that kicks off next month. Indian imports would also support benchmark international gold prices.
(Reporting by Siddesh Mayenkar; Editing by Anand Basu)
- Tweet this
- Share this
- Digg this
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- Indian firms tool up for defence orders on Modi's 'buy India' pledge
- Murder, revenge, lust and rampage take over 'Sin City' sequel |
- Champions Man City host title pretenders Liverpool
- Cabinet approves $1.4 bln new metro rail project
Finance Minister Arun Jaitley said on Thursday that the government was working to tighten up risk management in the banking sector, responding to recent scandals that have raised doubts about lending practices at state banks. Full Article