India gold futures almost steady near record highs

Thu, Nov 5 11:13 AM

Enlarge Photo A woman buyer looks at gold bangles at a jewellery shop in Mumbai in this...

India gold futures were held steady on Thursday near their record highs as support from a weak rupee was offset by lower crude oil, analysts said.

The most-traded December gold contract was 0.13 percent higher at 16,609 rupees at 11:00 a.m. The contract struck a contract high of 16,677 rupees in the last session.

The Indian rupee eased on Thursday, weighed down by a 1 percent fall in local shares and the dollar's gains against major units overseas.

A weak rupee makes the dollar-quoted asset expensive.

Oil fell below $80 a barrel, after a steep decline in U.S. crude inventories sent prices up 1 percent the previous day, as traders look to the fall in equities markets to take profits despite the weak dollar. Weak crude oil dims the yellow metal's appeal as a hedge against oil-led inflation.

However, analysts said there could be profit-taking after the yellow metal's recent rally to its record highs.

"There could be profit-taking in gold, and further directions could come in from (U.S.) data due later. Support would be seen at 16,480 rupees," said Aurobinda Prasad, deputy manager-research, Karvy Comtrade.

Gold may trade in the range of 16,530-16,750 rupees, said Murukesh Kumar, senior analyst with JRG Wealth Management.

Open interest for December gold on MCX was at 16,690 lots, up from 16,578 a day earlier. Volume on Wednesday was 42.54 kg.

(Reporting by Siddesh Mayenkar; Editing by Prem Udayabhanu)

(For more news on Reuters Money visit http://www.reutersmoney.in)

Inside News

Editor's picks