(Reuters) – Gold futures in India were traded high due to weaker rupee on Tuesday to their highest in a week but still traded range-bound.
Gold futures for August delivery on the Indian Multi Commodity Exchange (MCX) reached on Tuesday a high of 28,087 rupees per 10 gram, the highest since June 13. It was trading at 28,037 rupees per 10 grams later today recording an increase by 0.60%.
MCX Gold futures are lingering around 28,000 rupees per 10 grams as the global price hovered around $1,380 per ounce in Asian trades, according to Capital Market. The weak rupee played a crucial role in leveraging gold price in India to records-high. Despite the Indian government’s measures to increase the value of the Indian rupee artificially by curbing gold imports, the Indian currency still lose value.
Gold investors and traders are watching the U.S. Federal Open Market Committee (FOMC) closely to look for a clue about the U.S Federal Reserve next step. Investors debate over the feds timing to end the Quantitative Easing (QE) program. The Federal meeting should provide investors with a clue about this timing.
India, the world’s number one gold consumer, reports weak physical demand due to off season, and control measures. Haresh Acharya, Head of bullion desk at Parker Bullion, a wholesaler in Ahmedabad, expects the gold supply to slow down for coming months.