Reuters – In India gold futures are expected to move higher this week, maintained by an increase in physical demand and on probabilities of a stoppage in redemption from gold exchange traded funds.
At 5.32 p.m., June gold delivery on the Multi Commodity Exchange (MCX) jumped by 0.03% to reach Rs. 26,415 per ten grams.
Harish Galipalli, head of commodities research at JRG Wealth Management said “The market has been consolidating around the current level. There was continuous redemption from gold ETFs, but at the same there was huge physical demand,” he added “Going forward, ETF redemptions will slow down and that, along with improved spot demand, should help gold in edging higher,”
He also said that the June contract could upsurge reaching Rs. 26,800 this week.
On Monday, in overseas market, gold increased, spreading its advantages after its toughest week in a month, as the USD fell and European stock markets stabilized, whereas physical buying continued strong in Asia.
A Mumbai-based gold dealer with a private bullion importing bank said “The rupee is struggling to hold at current level. Further depreciation can increase appeal for gold,”
The rupee, which is trading close its lowest level in over eight months, has influence on determining the moneyed cost of the dollar-quoted gold.