India gold futures hit record high; outlook firm
India's gold futures extended gains to hit a new high of 20,101 rupees per 10 grams on Monday morning, helped by a weaker rupee, which makes the dollar-quoted yellow metal expensive.business Updated: Nov 08, 2010 11:03 IST
India's gold futures extended gains to hit a new high of 20,101 rupees per 10 grams on Monday morning, helped by a weaker rupee, which makes the dollar-quoted yellow metal expensive.
At 10:43 a.m., the contract on the Multi Commodity Exchange (MCX) was at 20,089 rupees, up 0.59 per cent.
In the previous session, it had gained 0.4 per cent.
The previous record high was 20,028 rupees struck in mid-October.
The Indian rupee weakened in early trades tracking losses in local shares and also weighed by the dollar's sharp gains against major currencies, especially the euro. [INR/]
Analysts are upbeat on the outlook for gold prices as the U.S. Federal Reserves' latest move of resuming government bond buying is stoking inflation fears.
"Buying could be done at 20,020, targeting 20,120-20,180 rupees, maintaining a stop loss of 19,940 rupees," said Aurobinda Prasad, head of research, Karvy Comtrade in Hyderabad.