Gold futures August delivery settled down 0.21% to Rs 27,630 per 10 gm on MCX in morning trading. Gold price hit an intraday high of Rs 27,669 and an intraday low of Rs 27,617. So far 761 contracts have entered into trade. The prices of gold have gone down Rs 1658, or 5.66 percent in August series so far.
"The price of gold in India has declined as international prices have fallen despite becoming weaker rupee," said 100McxTips. "Not much market activity like everyone else is waiting for the announcement of the budget 2014-15. Outlook for gold remains on the downside."
In the spot market, gold moved around 28,100 rupees per 10 grams, down by nearly Rs 200 since last Friday.
" We hope that spot prices for trading gold on the upside such as increasing geopolitical tensions in Iraq and dispute between Russia and Ukraine can worsening in demand for safe haven. In addition, weak dollar after weak U.S. economic data can be sustain prices to trade in green. Moreover, the decision of the U.S. Fed to continue its accommodative monetary policy can act good for prices. However, the increased risk appetite in the global markets may restrict sharp spike in in prices. Investors remain cautious before of U.S. economic data and the Euro Zone. In native markets depreciation in Indian rupee may support prices. ", said 100 Mcx Tips Commodity Advisory.
"There is a lot of volatility in the marketplace. Stroke is in range. All eyes are focused on the current budget, which was presented on July 10. Monsoon is also essential for the extraction of gold," said a bullion dealer with based in Mumbai. Nearly 60% of gold consumption in India is explained by the rural India.
The price of the yellow metal posted strong gains of over 5% of $ 1250 to $ 1320 level. As mean the demand for investment for this product has been lower in the last months. Performance SPDR gold holdings remained stable with investing in ETFs was a little higher than 782 tonnes to 785 tonnes. Physical demand in China and India, the two largest consumers worldwide have been systematically lower.
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