MUMBAI: Gold futures edged higher from a two-week low on Thursday, helped by a weaker rupee, which makes the dollar-quoted asset expensive, analysts said. The most-traded February gold contract on the Multi Commodity Exchange was 0.29 per cent higher at Rs 17,138 per 10 grams at 10:46 am.
The contract struck a two-week low of Rs 17,035 in the previous session, a level last seen on Nov 27. The rupee weakened on Thursday after the central bank tightened some external commercial borrowing (ECB) norms for companies. A lower start to local shares also added to the downward pressure.
Gold may test Rs 17,250. Buying is recommended at Rs 17,025, with a stop loss of Rs 16,970 and targeting 17,250, said Gnanasekar Thiagarajan, director, Commtrendz Research. Investors would also await the US weekly jobless claims slated later in the session for direction.
Gold may trade in the range of Rs 16,960-17,200, said Aurobinda Prasad, head of research, Karvy Comtrade. Analysts said there could be bargain-hunting later after the yellow metal shed about 6 percent in the previous six sessions.
Open interest for February gold on MCX was at 16,075 lots, up from 15,916 a day earlier. Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:45 am.
