Gold futures trade flat, despite lower equities

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Gold futures trade flat, despite lower equities
Gold futures on MCX rose marginally on Monday as speculators created fresh positions. A dip in price of gold attracted bargain buying at lower levels.

Price rise was also seen as investors purchased the precious metal on expectation of a rise in demand in the spot market during the upcoming festive season.

However, gains were limited due to lingering currency worries and the euro zone debt crisis which escalated after renewed fears from Spain, which analysts believe would need a sovereign bailout. International gold price eased today and was seen at $ 1,573 an ounce.

Gold for August delivery contract on MCX opened at Rs 29,309 per 10 grams and was trading at Rs 29,345 per 10 grams higher by Rs 68 at 2.30 pm IST.

While futures for October contract was seen trading at Rs 29,699 per 10 grams.

A depreciating rupee against the US dollar drove prices up on domestic front. Indian bullion of 99.9 and 99.5% purity was seen trading at Rs 29,800 and Rs 29,600 per 10 grams, respectively.

Investors are cautious against taking any major positions, as the direction still seems to be unpredictable due to uncertainties over the global economies and volatility in currencies.

Read more about: gold, futures
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