Gold falls from record high as rupee strengthens

India gold futures extended losses on Tuesday on continued profit-taking triggered by a strong rupee, after the yellow metal struck a record high in the previous session, analysts said.

The most-traded December contract was 0.20% lower at Rs 16,584 per 10 grams at 10:51 am, after hitting a fresh all-time high of Rs 16,703 on Monday.

The contract had gained 4.3% in the previous week.

The rupee strengthened to a new three-week high helped by firmer stocks and currencies, but demand for the US unit from oil refiners limited further gains. A strong rupee makes the dollar-quoted asset cheaper.

"The rally seems to be overdone in gold and it would be in a corrective mode and may find support at Rs 16,525," said Gnanasekar Thiagarajan, director, Commtrendz Research.

Supports are placed at Rs 16,565/16,513, while resistance is pegged at Rs 16,686/16,755, said Saritha Baby AG, an analyst with Kochi-based Geogit Comtrade.

Open interest for December gold on MCX was at 15,795 lots, up from 15,765 a day earlier. Volume on Monday was 31.08 kg.