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Indian gold futures consolidated gains for the second straight day on Wednesday as the yellow metal broke a key resistance level in international markets, while soyaoil prices slipped.

February gold on the Mullet Commodities Exchange (MCX) rose 31 rupees to 7,561 rupees per 10 grams. April gold rose 36 rupees to 7,607 rupees.

Gold broke a key resistance level of $510 on Wednesday as fund buying intensified after the Tokyo futures extended gains on a weak yen.

Spot gold rose to $510.50/511.00 an ounce in afternoon trade from $507.50/508.30 late in New York on Tuesday, when gold rose nearly $5.00 on fund buying.

"Indian gold futures are rising mainly on individual transactions," said an Ahmedabad-based dealer. "We will know whether the bullish trend will continue only after the big players start re-entering the international market in January first week after the holidays," he added.

The prices of gold in India usually track those in the international market. The January soyaoil contract on India's MCX fell 2.90 rupees to 339.95 rupees per 100 kg due to poor demand. India has sold 36,000 tonnes of soyameal to China in new deals after Beijing cancelled contracts last month when demand was hit by bird flu. The demand for Indian soyameal has grown because it was quoting at a discount to international prices.

The January sugar contract was up 1 rupee at 1,830 rupees per 100 kg at the NCDEX. April sugar rose 6 rupees to 1,894 rupees.

Wheat futures fell slightly on sales by individual investors. The January wheat contract was down 1.20 rupees at 809 rupees.

Copyright Reuters, 2005


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