Gold prices in India, the world’s biggest buyer of the metal, could rise past their highest level in more than 15 weeks hit on Tuesday, helped by a weakness in the local currency, traders said. At 1141 GMT, the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.71 percent higher at 28,478 rupees ($480) per 10 grams, after hitting 28,479 rupees, the highest since April 12. “Mostly rupee weakness will contribute to local price strength. Also, due to the recent measures, spot prices are at a premium,” said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai.
The rupee, which weakened past 60 rupees to a dollar again, plays an important role in determining the landed cost of the yellow metal. Imports of the yellow metal has halted after the central bank tied gold imports to exports last week, pushing premiums to about $45 an ounce on London prices.
Buying is advised in August gold at 28,250 rupees, for a stop loss of 28,100 rupees, and targeting 28,700 rupees, said Thiagarajan.
Silver for September delivery on the MCX was 0.03 percent higher at 41,158 rupees per kg. Thiagarajan suggests buying silver above 42,000, with a stop loss of 41,500, targeting 43,000 rupees
Source: Bullion Bulletin