India gold seen falling further
India gold futures are likely to extend losses for third week in a row due to expectations of a strong dollar overseas, though renewed physical interest from traders are likely to limit the downside, analysts said.
January 17, 2011 / 20:30 IST
India gold futures are likely to extend losses for third week in a row due to expectations of a strong dollar overseas, though renewed physical interest from traders are likely to limit the downside, analysts said.
"Domestic traders would trim their long positions in precious metals complex due to strong dollar after optimism in recovery in the US," said Harish Galipelli, vice-president with JRG Wealth Management."Selling could be done at Rs 20,350, targeting Rs 20,180/20,100," said Galipelli. At 4:55 p.m, the most-active gold for February delivery on the Multi Commodity Exchange (MCX) was trading flat at Rs 20,260 per 10 grams, after gaining 2.4% in the previous two weeks.Gold had struck a contract high of Rs 20,924 early last month.A stronger dollar dims the yellow metal's appeal as an alternative investment."We may see some further correction in gold on profit-booking, prices have been consolidating," said Pranav Mer, senior analyst with Mangal Keshav Comodities. Gold may trade in the range of Rs 20,100-20,500.Winter harvesting season is underway in India and is expected to leave more disposable income in the hands of farmers, who contribute to the bulk of gold demand. Wedding season starts in February.In India, which accounts for 20% of global demand for jewellery, gold is widely gifted in religious celebrations and weddings. 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!
