Gold futures rose in the domestic market on Thursday as a sharp depreciation in the Indian rupee against its US counterpart more than offset the decline in gold prices in the overseas market. The rupee slumped to a six-month low against the greenback, exerting upward pressure on the prices of the precious metal in the domestic market.
Gold futures slumped in the overseas market after Federal Reserve Chairman Ben Bernanke signaled that the central bank may scale back stimulus in the next few meetings if the labour market continues to improve, dimming the appeal of the precious metal, which is a hedge against the inflationary risk of monetary stimulus. A drop in holdings in gold backed exchange traded products (ETP) also weighed on the precious metal.
At the MCX, Gold futures, for the June 2013 contract, are trading at Rs 26,170 per 10 gram, up by 0.80 per cent, after opening at Rs 26,020, against a previous close of Rs 25, 963. It touched an intra-day high of Rs 26,189. (At 11:04 AM).