Mumbai: Gold futures are likely to rise on Thursday morning, extending gains to their record, following a rally overseas, with a stronger rupee expected to cap the upside, analysts said.
The most-traded gold for August delivery on the Multi Commodity Exchange (MCX) closed 0.98% higher at Rs. 22,920 per 10 grams, after hitting an intra-day high of Rs. 22,981, very close to the previous April record of Rs. 23,148.
The rupee, which has a bearing on the landed cost both copper and gold, rose tracking gains in the euro and Asian currencies, but slight weakness in local shares limited the rise.
Overseas gold hit a record high above $1,589, buoyed by a sharp drop in the dollar after Moody’s warned the US may lose its top credit rating, the possibility of more Federal Reserve stimulus and Europe’s deepening debt crisis.
