Commodity Online
MUMBAI: Gold futures prices in India’s commodity exchanges eased as markets opened on Monday. Gold futures February contract price at India’s largest Multi Commodity Exchange traded down by Rupees 105.
In early Asian trade, gold was trading 1 per cent down at $914.40 an ounce.
While MCX gold futures immediate Feb 5 contract traded Rupees 14347, traders said they expect the yellow metal price to come down in the spot market this week. “Gold prices have heated up to touch record levels last week. We expect the prices to come down this week,” said Kiran Kumar, a bullion dealer in the Mumbai gold market.
Last week, spot gold prices zoomed past the historic Rupees 14,000 levels, prompting analysts to predict that the yellow metal could gatecrash through the Rupees 15,000 level in India, the largest importer and consumer of gold in the world.
Trading in bullion contracts contributed Rs 2,023,441 crore to the total turnover of India’s commodity exchanges during the first nine months of the current fiscal, according to a data from the commodity market regulator Foward Markets Commission (FMC).
According to Religare Commodities, inflationary figures have also been dropping throughout the world and since yellow metal is considered as a hedge against inflation, thus taking gold to lower levels. “As long as gold does not breach $931/ounce, broader trend continues to favour the bears. With crude oil trading weak and overall global scenario signifying deflation, gold is expected to remain challenged at higher levels,” said the commodities broking house.
