MUMBAI: Gold futures traded lower on Thursday, pressured by a strong rupee that made the dollar-denominated asset cheaper, while the market awaited a European Central Bank policy decision and US data for direction, analysts said.
The benchmark June gold contract was 0.36 per cent lower at 15,034 rupees per 10 grams at 11:30 a.m. "The appreciating rupee is hurting gold," said Devarsh Vakil, manager, research, with Anagram Capital.
The Indian rupee rose to its highest in more than a month after a surge in local stocks boosted hopes for foreign portfolio inflows, while the dollar's weakness abroad also helped.
The ECB rate decision is due at 1145 GMT. Traders would be also awaiting the release of key US data like non-farm payroll, factory orders.
"There will be no major movements in gold and market would wait for fresh cues," said Vakil. "We will wait for today's ECB rate decision," said Debjyoti Chatterjee, an associate vice-president with ADMISI Commodities in Mumbai.
"We expect gold to consolidate in the range of 14,850-15,200," Chatterjee added. Open interest for June gold on MCX was at 12,216 lots, down from 12,446 a day earlier. Volume on Thursday was 47.29 kg.
