Gold futures were almost flat

• tanvi_singh
• August 31, 2009

Gold futures were almost flat on Monday morning as support from a weak rupee was offset by a downward push from crude oil, analysts
said.

The most-traded October contract was 0.17 per cent higher at Rs 15,147 per 10 grams.

The Indian rupee dropped in tandem with lower domestic stocks, with mixed Asian currencies providing little direction. A weak rupee makes the dollar-quoted asset expensive.

Oil fell towards $72 a barrel as a drop in China’s key stock index stoked worries about the country’s economy, but hopes that energy demand would soon rebound are on track to push prices up about 4 per cent in August.

Lower crude oil dims the yellow metal’s appeal globally as a hedge against oil-led inflation.

“The local currency is supporting gold, while crude is negating it,” said Krishna Reddy, an analyst with Way 2 Wealth Securities in Mumbai. “Gold’s gains would be capped at 15,145-15,150 (rupees).”

Gold may trade in the range of Rs 14,980 – Rs 15,200,
Open interest for October gold on MCX was at 15,531 lots, down from 15,633 a day earlier.
News beuro,

• Last Modified: August 31, 2009
• Filed Under: WORLD