Depreciation in the US dollar and rally in the crude oil futures above $100 a barrel propped up the yellow metal futures past $1600 though the volumes remain low ahead of Christmas holidays .
The dollar edged lower in Asian trading hours Friday, although moves were muted and volumes reportedly thin, with the euro remaining under the $1.31 handle. The dollar index which tracks the U.S. unit against six other currencies — was at 79.827, down from 79.929 in late North American trade Thursday.
The euro traded at $1.3073, edging up from $1.3053 late Thursday. The European currency fell below the $1.31 level Wednesday after the European Central Bank announcement that its new, longer-term lending operation had attracted strong demand.
An ounce of gold on COMEX division of New York Mercantile Exchange is trading up $1 at $ 1612. Gold has bounced back quite convincingly after falling below $1568 levels last week.
The appreciation in the Indian Rupee from above Rs. 54 per US dollar has robbed of shine from the Indian gold futures. The Indian rupee appreciated by 7 paise to Rs. 52.65 per U.S. dollar in early trade on the Interbank Foreign Exchange today, supported by gains posted by the euro and other currencies against the American dollar overseas and a higher opening in the domestic stock market.
MCX February gold is trading up nearly Rs. 65 at Rs. 27761 per 10 grams. It may trade in the range of Rs. 27800 to Rs. 27690 today amid lower trading volumes ahead of holiday week.
