Gold likely to surge past two-week high

According to the article, Indian gold futures are expected to surge past their highest levels in two weeks, helped by expectations of a further depreciation in the rupee. Gold will also find more support from Russian central bank buying.

Source: Reuters
Mon, Jul 23, 2012 at 15:26
Money Control

Indian gold futures are likely to surge past their highest level in two weeks, helped by expectations of a further depreciation in the rupee.

The most-active gold for August delivery on the Multi Commodity Exchange (MCX) hit a high of Rs 29,397 per 10 grams, a level last seen on July 11. At 9:26 GMT, gold was trading up 0.26% at Rs 29,354 per 10 grams.

"Gold will undoubtedly find support from the rupee's depreciation, and also, some support from Russian central bank buying," said Gnanasekar Thiagarajan, director with Mumbai-based Commtrendz Research.

Buying is recommended in gold on a dip to Rs 29,250, for a target of Rs 29,400-29,500, with a stop loss at Rs 29,100, said Thiagarajan.

The rupee, which hit its lowest level in a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

In the overseas market, Russia's central bank raised its gold reserves by 6.2 tonnes to 836.3 tonnes in June. Central-bank buying has underpinned gold's rallies in the last several years.

Silver futures, which traded steady on Monday, could fall due to a weakness in base metals. Silver for September delivery on the MCX was trading 0.12% lower at Rs 52,778 per kg.

Selling is advised in silver on rallies to Rs 52,800, for a target of Rs 51,900, said Thiagarajan.

To see original article CLICK HERE

Follow Us

Share Page


Weekly Charts

Current Spot Prices


Special Offers

© 2017 Swiss America Trading Corp. All Rights Reserved.   |   Privacy Policy   |   Site Map   |   Contact Us   |   Mobile Version
SWISS AMERICA and Block Logo are registered trademarks of Swiss America Trading Corp.
Where did you hear about us?
Pat BooneMichael Savage
OtherWayne Allyn Root
Jason StapletonChristopher Greene (AMTV)
Ron DouglasJoe Walsh