MCX Gold Slips Even As Rupee Falls

Gold......

Domestic gold futures on Multi Commodity Exchange slipped today even though the Rupee appreciated and the international gold futures surged.

MCX October gold futures are trading down nearly Rs 20 at Rs 28038 per 10 grams extending yesterday’s losses of more after than 1%. The counter may find support near Rs 27900 and Rs 27750 levels.

The rupee today dropped by 28 paise to 60.68 in late morning deals on the back of a strengthening of the US currency overseas despite a recovery in the equity market. The rupee resumed lower at 60.70 per dollar as against the last closing level of 60.40 at the Interbank Foreign Exchange (Forex) market and dropped further to 60.84.

In the global market, a key gauge of the dollar's performance rose in the early trade, clawing back from multi-week lows suffered after the US Federal Reserve offered no clues as to when it plans to slow the pace of monetary stimulus.

A key gauge of the U.S. dollar’s performance rose on Thursday, clawing back from multi-week lows suffered after the U.S. Federal Reserve offered no clues as to when it plans to slow the pace of monetary stimulus.

The ICE dollar index, which tracks greenback’s movement against six rivals, rose to 81.715, up from 81.464 late Wednesday in North America. The euro on Thursday fell to $1.3272, down from $1.3332 on Wednesday, and the British pound declined to $1.5162 from $1.5248.

Policy decisions were due from both the European Central Bank and the Bank of England later Thursday. Improving economic data can bolster the view that the Fed is moving closer to slowing the pace of asset purchases. The monthly jobs report due Friday marks the last key piece of U.S. data for this week

International gold futures are trading up $ 4.9 at $ 1317.9 per ounce on the COMEX division of New York Mercantile Exchange. However the metal continued to face resistance near $1350 levels.

Source by Commodity Insights