India gold, silver steadies due to spike in dollar

Business

oi-Monika

By Monika Nihalani

Published: Wednesday, December 28, 2011, 14:36 [IST]

Overseas gold dropped further on Wednesday but the impact was not much on Indian prices due to volatility in currencies. The Rupee-dollar gap has again widened, making it expensive for Indian buyers to buy metal.

Of late, precious metals are moving in line with riskier assets. Along with equities the metals have also dampened due to impasse over the euro zone recovery.

US gold fell to $1,589 a troy ounce on weak global cues. While, India gold futures stood steady and couldn't reflect the actual fall due to fall in rupee against the US dollar.

Gold futures on Multi Commodity Exchange (MCX) for February delivery opened at Rs 27,626 per 10 grams and was trading around Rs 27,654 – Rs 27,656 per 10 grams.

Silver also moved in a similar fashion, silver futures for March delivery opened at Rs 52,590 per kg and were trading in the range of Rs 52,695 – Rs 52,705 per kg.

GoodReturns.in