MUMBAI: Gold futures are likley to extend gains on Wednesday morning to hit another record high tracking strong overseas markets, but a stronger rupee could limit the upside, analysts said.
The most-active December gold contract on MCX last closed at 19,513 rupees per 10 grams, up 1.4 percent, after hitting a record high of 19,537 rupees.
The contract may open at 19,520 rupees, said Pranav Mer, senior analyst with Mangal Keshav Commodities. International gold hit a fresh record high, the eighth in the past nine consecutive sessions, riding on dollar weakness and market anticipation on more quantitative easing from the US Federal Reserve.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
"Buying could be seen at support level of 19,390 rupees, while resistance would be seen at 19,650," said Mer.
COPPER: India copper futures are likely to extend the previous session's gains on Wednesday morning tracking strong overseas markets, though rising rupee could limit the upside, analysts said. The most-active November copper on the Multi Commodity Exchange (MCX) last closed at 366.05 rupees per kg, up 1.4 percent.
The contract may open at 367 rupees, said Mer, adding "There could be a range-bound movement in copper, with a positive bias," on account of a strong Indian rupee. London copper rose 1 percent to its highest in over two years on expectations of further US Federal Reserve monetary easing.
