MUMBAI: After gaining more than 4% in the previous session, gold prices seem to pause. December contract on COMEX was near $865 an ounce on Tuesday. The benchmark contract had made a high of $879 on Monday.
December future on MCX was near Rs 13230 per 10 gm, nearly Rs 100 down from its previous close. A firm rupee in early trade limited the precious metal’s gains. But the Indian unit weakened later.
Monday’s run in prices was following a rush for gold as a safer bet while stock markets as well as commodities as a whole plunged heavily.
“While underlying trend for the yellow metal remains bullish, there could be some profit booking today on remarks from officials of major central banks,” said Harish Gallipeli, research head, Karvy Comtrade.
Today, European Central Bank president, Triceht, as well as US Federal Reserve chairman Bernanke are expected to speak on state of the financial markets and actions to provide liquidity.
According to Gallipeli, $920-800 is the broad range expected to persist for the international December futures due to ongoing troubles and uncertainty in the financial markets.
“However for the day, a breach on either side of $854-870 range could bring in a directive move. For MCX December, the higher side could be capped by Rs 13290- 13430 range while Rs 13100 could act as an initial support,” he added.
Meanwhile, dollar index--a gauge of the greenback’s strength against a basket of currencies--continued to trade above 81, closer to its 13-month high of 81.74 Monday.