October 01, 2012 / 16:03 IST
Gold futures in India, the world's biggest consumer, are likely to fall beyond a monthly low on Monday weighed by expectations of a stronger dollar, which is considered as an investment alternative to the yellow metal.
"Risk aversion on the back of euro zone worries is expected to boost the dollar and pressure commodities," said Gnanasekar Thiagarajan, a director with Commtrendz Research.At 0808 GMT, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.33 percent lower at Rs 31,097 per 10 grams, after hitting a low of Rs 31,062 earlier, a level last seen on August 31.Selling is advised in gold at Rs 31,300, with a target of Rs 30,900, and a stop loss of Rs 31,450, said Thiagarajan.The dollar and gold often move in opposite directions as the two compete for funds globally. The euro fell to a three-week low after an audit of Spain's banks failed to quell concerns about the country's progress towards a bailout needed to shore up its public finances.The fall in gold prices is likely to be limited due to a partial revival in physical demand in the festival season in India, which will continue until December.Industry officials estimate a more than 50 percent fall in gold imports this year.Silver also edged lower, extending losses for a third straight session on Monday.Silver for December delivery on the MCX was 0.48 percent lower at 62,477 rupees per kg.In silver, selling is advised on rallies to 63,200 rupees, with a stop loss of 63,450, and a target of 62,400.(Reporting by Siddesh Mayenkar; Editing by Jijo Jacob) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
