Precious Metals Preview: Rupee Outlook Weighs On Local Gold

MCX Gold stayed supported even as the global Gold futures slipped to a three week low as a weak movement in the Indian Rupee supported the local prices. The INR fell near 66.75 mark against the US dollar – its fresh 13 month low following a drop in domestic equities and firm US dollar overseas. COMEX Gold slipped near one month low around $ 1320 per ounce while MCX Gold futures closed flat at Rs 31386 per 10 grams.

Rupee slipped in afternoon as a late correction hit local stocks, easing from near two and half month highs. Indices logged modest losses as investors booked profits amid weakness in global stock markets. Recent firmness in crude oil prices too worried investors. After a negative opening, market slipped further in morning trade. Indices staged a recovery in afternoon trade. However, fresh selling pressure dragged indices lower in mid-afternoon trade.