Indian gold seen extending gains past 2-month high

MUMBAI Mon Jan 27, 2014 6:13pm IST

An employee shows gold bangles to a customer at jewellery showroom at a market in Mumbai November 1, 2013. REUTERS/Danish Siddiqui/Files

An employee shows gold bangles to a customer at jewellery showroom at a market in Mumbai November 1, 2013.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

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)

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

India-WTO Row

REUTERS SHOWCASE

Market Eye

Market Eye

Nifty falls most in nearly 3-1/2 weeks; Sensex down over 400 points  Full Article 

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Reviving Infosys

Reviving Infosys

CEO Sikka says to improve business with new growth avenues  Full Article 

Outlook Slashed

Outlook Slashed

ArcelorMittal cuts outlook as ore prices hit mining  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China, Asian factory growth gathers pace; Europe falters  Full Article 

Car Launch Ahead

Car Launch Ahead

Tata Motors bets on new sedan to revive weak India sales.  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Reuters India Mobile

Reuters India Mobile

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