|Chennai||Rs. 24840.00 (-0.36%)|
|Mumbai||Rs. 25460.00 (-0.16%)|
|Delhi||Rs. 25450.00 (2.21%)|
|Kolkata||Rs. 25000.00 (0%)|
|Kerala||Rs. 24700.00 (0%)|
|Bangalore||Rs. 25050.00 (1.42%)|
|Hyderabad||Rs. 24930.00 (1.63%)|
The gold futures market has seen a tussle among the bulls and the bears and the bears seem trapped.
A few days ago, the Reserve Bank of India (RBI) had brought out its new gold import policy. At that time, a few players thought demand-starved jewellers would start securing gold; also, global price movements were biased towards a fall. However, these short-sellers were trapped, as RBI's policy led to more confusion than clarity.
If that wasn't enough to trap the gold bears, the rupee dived in the last few days---from about 59/$ to about 61/$ on Wednesday, before recovering. This has increased the cost of imports, making gold costlier at a time when there is acute shortage in the physical market, as imports virtually came to halt due to confusion on the RBI policy. Now, it has turned into a battle against time, as positions were shortened in MCX August contacts, coming up for expiry.