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:

Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

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