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India gold almost steady; strong rupee may weigh

Last Updated: Tuesday, December 1, 2009 - 12:48

Mumbai: India gold futures were almost steady on Tuesday morning taking a breather after last week`s rally to their record highs, analysts said.

Investors would continue to watch Dubai`s loan repayment troubles for direction, they added.
The most-traded February contract was 0.08 percent higher at 17,733 rupees per 10 grams at 10:57 a.m., after hitting a record high of 18,082 rupees during last week.

"Profit-taking could be seen in later part of the session. Support is placed at Rs 17,580/17,600," said Abhishek Chauhan, an analyst with Angel Commodities.

The contract had gained more than 9 percent in November.

Gold may trade in the range 17,700-17,850, said Aurobinda Prasad, head of research, Karvy Comtrade.
Analysts said a strong rupee, which makes the dollar-quoted asset cheaper, would continue to weigh on gold. The Indian rupee rose as the dollar fell against major currencies overseas, but it moved in a very narrow band.

Open interest for February gold on MCX was at 17,640 lots, up from 13,718 a day earlier.

Bureau Report

First Published: Tuesday, December 1, 2009 - 12:48

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