Gold futures tad lower despite firm global cues

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Gold futures posted slim losses in the domestic market on Monday as investors and speculators resorted to mild profit-booking in the precious metal following a surge in prices last week.

However, record weakness in the Indian rupee, which slid to a fresh low of 62.40 against the US dollar and firm global cues, exerted upward pressure on domestic prices, curbing losses in the yellow metal.

Gold futures surged to a two-month high in the overseas market as holdings in gold-backed exchange traded products (ETP) rose on a weekly basis for the first time this year while global bar and coin purchases surged to a record in Q2 2013 and jewelry consumption rose to the most since 2008, a sign that demand is picking up.

The World Gold Council said that consumer demand for the yellow metal in India rose 71 per cent in Q2 2013 while the same in China surged 87 per cent.

Gold futures for October 2013 contract, at MCX, were trading at Rs. 30,805 per 10 grams, down by 0.11 per cent after opening at Rs. 30,807 against the previous closing price of Rs. 30,840. It touched an intra-day low of Rs 30,722. (At 11:15 AM).

Dion Global Solutions Ltd.

Read more about: gold, gold futures
Story first published: Monday, August 19, 2013, 14:20 [IST]
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