Indian gold expected to fall below four-week low
MUMBAI: Indian gold futures are expected to extend losses from a near one-month low touched last week as investors may resort to year-end profit taking.
The actively traded gold for February delivery on the Multi Commodity Exchange (MCX) was 0.28 per cent lower at 31,612 rupees per 10 grams at 11.31 pm, after hitting a low of 31,480 rupees last week, a level last seen on November 7.
The yellow metal has gained about 14 per cent so far in the year.
“Gold will remain weak to subdued due to year-end profit taking,” said Gnanasekar Thiagarajan, director of Commtrendz Research.
Selling is advised at 31,800-31,850 rupees, for a target of 31,000 rupees, with a stop loss at 32,000 rupees, Thiagarajan said.
Investors will also watch the outcome of the “fiscal cliff” in the United States, which could push the world’s top economy into recession, for price direction.
Republicans and the White House have made little progress in their negotiation to avert the automatic kick-off of $600 billion tax hikes and spending cuts early next year, dubbed as the “fiscal cliff”.
Silver for March delivery on the MCX was 0.60 per cent lower at 63,453 rupees per kg.
Selling is advised at 64,000, for a target of 62,500 rupees, said Thiagarajan.