Published on Fri, Jan 15, 2010 at 11:32 | Source : Reuters
Updated at Fri, Jan 15, 2010 at 14:37
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Gold edges lower on strong dollar overseas
India gold futures edged lower on Friday morning as a reversal in dollar weighed on sentiment, dimming the yellow metal's appeal as an alternative investment, analysts said.
India gold futures edged lower on Friday morning as a reversal in dollar weighed on sentiment, dimming the yellow metal's appeal as an alternative investment, analysts said.
The most-traded February gold contract was 0.06% lower at Rs 16,884 per 10 gm at 10:56 am, after hitting a low of Rs 16,862 in early deals.
The dollar and yen rose, reversing earlier losses against other major currencies such as the Aussie, as investors were cautious of building riskier positions while the global economic outlook remains uncertain.
However, analysts said, the outlook for domestic gold is still positive as the crucial supports were still intact.
"The outlook is still firm, we would go for a buy at Rs 16,800 for a target of Rs 17,000," said Dharmesh Bhatia, an Analyst with Kotak Commodity Services.
Open interest for February gold on MCX was at 15,171 lots, down from 15,323 a day earlier. Gold may trade in the range of Rs 16,850-17,000, said Abhishek Chauhan, an Analyst with Angel Commodities.
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