MCX Gold Tops Above INR 30k

NEW DELHI-INDIA  (Sept 25)  Mcx gold futures topped above INR 30k in the early Europe action today tracking gains in the international futures. Weakness in the equities provided support to the yellow metal.

European stock markets opened broadly lower on Wednesday, tracking prior-day losses in the U.S., where discussions about raising the debt ceiling weighed on sentiment.

Moody's Investors Service warned that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown. Germany's DAX 30 index fell 0.4% to 8,626.32, while France's CAC 40 index slid 0.4% to 4,180.91. The U.K.'s FTSE 100 index gave up 0.3% to 6,554.58.

MCX October bullion futures are trading up more than Rs 200 at Rs 30030 per 10 grams. It hit the days’ high of Rs 30139 earlier in the session.

MCX December silver futures are however trading below Rs 50000 up less than Rs 50 per kg. MCX December silver futures plunged below Rs 50000 levels ending down nearly Rs 2500 per kg on Friday after Reserve Bank of India hiked its key interest rate unexpectedly to 7.5%.

The sharp fall in the local commodities was due to sharp appreciation in the Indian Rupee. The currency is up hefty 9.6% from its all time low of 68.36 per US dollar.

International bullion for December expiry is trading at $1325 levels up nearly $8 per ounce on the Comex in New York Mercantile Exchange. Yesterday, it shed $10.70, or 0.8%, to settle at $1,316.30 an ounce after touching a low under $1,306. Including Tuesday’s action, prices have tallied a three-session loss of 3.9%.

Gold modestly pared some of its losses shortly after data Tuesday showed that the U.S. consumer confidence index fell to 79.7 in September from a revised 81.8 in August.

The December gold contract on Monday fell $5.50, or 0.4%, unable to find relief after Atlanta Fed President Dennis Lockhart and New York Fed President William Dudley offered downbeat views about the pace of U.S. economic recovery.