MCX Gold Surges Near Rs 31400 On Weak Rupee

Gold is holding steady around $ 1350 per ounce mark as buying is emerging in the yellow metal on weak US dollar. However, the strength in global equities is capping the upside for the metal after prices tested near three month high in last week. The COMEX Gold futures are currently trading at $ 1350 per ounce, almost unchanged on the day. MCX Gold futures are currently trading at Rs 31372 per 10 grams, up 0.24% on the day. A weak Indian Rupee is supporting the local futures. The Indian rupee recovered slightly against the dollar on Tuesday, 17 April 2018 on fresh selling of the greenback amid a higher opening of domestic equities. A weak dollar against other currencies overseas also supported the domestic unit. Rupee, however, erased early gains to weaken further thereafter. The domestic currency opened at Rs 65.45 against the dollar and dropped to a low of 65.54 so far during the day. In the spot currency market, the Indian unit was last seen trading at 65.52. Yesterday, the rupee had fell by 29 paise, or 0.44%, to close at a six-month low of 65.49 against the US currency on widening trade deficit concerns amid heightened geopolitical worries.

Meanwhile, the US dollar index is currently quoting around 88.95 levels- its three week low amid mixed economic data. The US Commerce Department released a report on Monday showing retail sales in the US increased by more than anticipated in the month of March. The report said retail sales climbed by 0.6% in March after edging down by 0.1% in February. The New York Fed said its general business conditions index fell to 15.8 in April from 22.5 in March. Likely reflecting winter weather effects, the National Association of Home Builders released a report unexpectedly showing a modest drop in US homebuilder confidence in the month of April. The report said the NAHB/Wells Fargo Housing Market Index edged down to 69 in April from 70 in March. However, US stocks rose amid steady buying as traders looked beyond Syria worries and focused on economic data and corporate results.