Apr 19, 2010
India gold futures seen extending losses
Apr 19, 2010
MUMBAI, April 19 (Reuters) - India gold futures may extend losses for a second straight week, weighed by expectations of a strong dollar overseas, which dims the yellow metal's appeal as an alternative investment, analysts said.
The most-active June gold contract MAUM0 was trading 0.26 percent lower at 16,566 rupees per 10 grams at 5:12 p.m., after losing 1.3 percent in the previous week. "Gold can come down on strong dollar and continued liquidation and profit-booking," said Somnath Dey, in-charge, metals and energy research.
There may be some selling at 16,500 for a target of 16,211, maintaining a stop-loss of 16,656 rupees, said Dey.
The dollar index, the gauge of greenback's performance against a basket of currencies, was trading 0.45 percent higher at 81.188.
Gold and the dollar move in opposite direction as the two compete for funds globally.
"Any rally in gold will be sold now... selling could be done at 16,675, maintaining a stop loss of 16,710, targeting 16,380-16,400," said Gnanasekar Thiaga rajan, director, Commtrendz Research. (Reporting by Siddesh Mayenkar; editing by Ramya Venugopal)
© Thomson Reuters 2022 All rights reserved.