MCX Gold Futures Near Rs 30000 Mark

MUMBAI-INDIA (Oct 22)  MCX benchmark gold futures neared the Rs 30000 per 10 grams mark in the mid Asia electronic session today supported by the weak Indian currency.

The Rupee slipped towards a one week low of 61.80 against the US dollar in local market today. The currency quotes at 61.72, down 20 paise or 0.32% on the day.

Domestic bullion for December expiry is trading up nearly Rs 70 at Rs 29825 per 10 grams. The metal hit the intraday high of Rs 29876. It may face a resistance near Rs 29900 and Rs 30000 level today.

The dollar was higher against the majors ahead of the September jobs report for the U.S., originally due out October 4 but delayed because of the shutdown, is due out later Tuesday. Economists expect the addition of 180,000 new jobs and for the unemployment rate to stay at 7.3%.

Asian as well as the European equity markets are trading lower ahead of the U.S. jobs data that could shape expectations as to whether the Federal Reserve will start withdrawing stimulus this year.

However the international gold futures were hovering in a slim range with the payrolls data on the radar and also as the holding in the largest gold-backed exchange-traded fund dropped down.

Holdings in SPDR Gold Trust fell 10.51 tonnes on Monday to 871.72 tonnes, their lowest since Feb. 2009. It was the fund's biggest one-day fall in holdings since early July. SPDR's holdings have fallen about 430 tonnes so far this year.

COMEX December bullion futures traded in the narrow range of $ 1317.3-1313.1 per ounce. The metal may face a resistance near $ 1325-30 levels today and a support is expected near $1300 levels.