RTRS: India gold edges higher as weak rupee supports
MUMBAI, Oct 29 (Reuters) - India gold futures edged higher on Thursday helped by a weak rupee, making the dollar-quoted asset expensive, analysts said.
The most-traded December gold MAUZ9 on the Multi Commodity Exchange was 0.24 percent higher at 15,914 rupees per 10 grams at 10:44 a.m.
The contract is still down about 1 percent from its all-time high of 16,066 rupees, struck on Oct. 23.
The Indian rupee weakened for the fourth consecutive session, dropping to its lowest in nearly a month, as an early fall in domestic shares and month-end demand from refiners pushed up dollar purchases. [INR/]
"Initially we are expecting some upside, but gold may come down later in the session," said Aurobinda Prasad, deputy manager-research, Karvy Comtrade.
Selling is recommended at 15,900 rupees with a stop loss of above 15,930 and targeting 15,830 rupees, he added.
"There could be more profit-taking in gold if it breaches important support levels, support is seen at 15,820 rupees," said Kunal Shah, an analyst with Nirmal Bang.
Open interest for December gold on MCX was at 13,199 December lots, up from 13,049 a day earlier. Volume on Wednesday was 35.39 kg.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:44 a.m. <0#MAU:>:
Contract Current price Net change
Dec 15,913 +37
Feb 15,945 +34
For a technical look at gold double click (www.reutersindia.net/gold.htm) (Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)
