Indian gold and soya futures shrugged off on Friday the effect of the deadly bomb attacks in London and returned to range-bound trade while sugar stayed firm on low stocks. August gold at the Multi Commodity Exchange rose 4 rupees to 6,088 per 10 grams, while October was up 6 rupees at 6,163. Gold lost steam in Asian trading on Friday, having climbed above $428 on safe-haven buying in the wake of the attacks in London.
Dealers said the buying ignited by the bombings that killed 37 people on Thursday was seen over, and the bullion market would shift back to currencies for direction.
Gold, regarded as a safe haven investment in times of trouble and uncertainty, rose to a 1-week high at $428.50 after four blasts tore through packed London underground trains and a bus in a co-ordinated rush-hour attack.
Dealers in India said late on Thursday in spot trade gold had climbed to 6,120 per 10 grams from 6,070 rupees. But it lost ground and opened on Friday at 6,060 rupees.
"There was panic in the market for a few hours after the blasts but as soon as things became clear gold came to its original levels," said one Ahmedabad-based gold importer.
"Any fear was momentary but had the blasts occurred in the United States the effect on gold would have been much higher," he said. India is the world's largest importer and consumer of gold. Spot gold in Asian trade was quoted at $423.85/424.35 an ounce, barely changed from late New York levels of $423.75/424.50 an ounce. Traders said soya futures, which fell after the news of the blast recovered ground on Friday.
"Soya futures which fell by more than two rupees at the National Board of Trade in line with the international market after the news has since gone up," said a Bombay-based broker.
July soyabeans at the National Commodities and Derivatives Exchange rose 1.70 rupees to 1,321.208 rupees per 100 kg while August soyabeans was up 3.70 rupees to 1,342.00.
Comments
Comments are closed.