Indian gold seen extending gains past 2-month high
MUMBAI (Reuters) - Gold futures in India are likely to trade higher this week, to extend their highest level in two months, buoyed by weakness in the rupee, though subdued activity in the physical market could keep the upside limited.
The actively traded gold contract for December delivery on the Multi Commodity Exchange (MCX) was 0.62 percent higher at 29,703 rupees per 10 grams, after hitting a high of 29,849 rupees, a level last seen on November 20.
"A weaker rupee should continue to support gold and COMEX could continue to trade sideways, so we are long on gold on MCX," Navneet Damani, associate vice-president, Motilal Oswal Commodities.
The rupee, which breached the 63 to a dollar mark on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Gold demand in the physical market will continue to remain subdued due to government restrictions on supply for the domestic market and a record 10 percent import duty.
The silver contract for April delivery on the MCX was 0.69 percent higher at 45,000 rupees per kg.
"Silver would also be supported by the depreciating rupee, on the MCX, 44,700 looks to be an attractive level to go long," said Damani.
(Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi)
- Tweet this
- Share this
- Digg this
- Comedian Joan Rivers remains in serious condition at N.Y. hospital
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- UPDATE 4-Iceland says eruption over, lifts all airspace restrictions
- Ukraine seeks to join NATO; defiant Putin compares Kiev to Nazis
- Swedish carrier backs out as first Bombardier CSeries operator
India's economy grew by a faster-than-expected 5.7 percent in the three months through June, its fastest pace in two-and-a- half years, helped by a rebound in manufacturing and mining sectors, government data showed on Friday. Full Article
Exclusive: Reliance plans $13 billion projects including new refinery. Full Article
In race for bigger margins, drug makers willing to lose the India "advantage". Full Article