Mumbai: Gold futures were down on Tuesday on the back of an overseas fall and an appreciating rupee that extended its losses, commodity brokerages said.
Overseas gold that guides Indian prices dipped, after twice hitting a 11-month high in the last couple of sessions, and the rupee saw a fresh 9-year high ahead of an interest rate decision, making the dollar-priced gold cheaper.
“It is looking weak, at least in the first half of the day,” said Tejas Parekh, senior research analyst at Motilal Oswal Commodities Broker Pvt. Ltd.
Another analyst said the June contract on Multi Commodity Exchange of India Ltd (MCX) could see further falls from current levels.
“June gold could find support at Rs9,425,” said Harish Galipelli, head of research at Karvy Comtrade Ltd. “If it breaches that, it could fall to Rs9,370.”
The June contract on MCX had an open interest of 9,348 lots, up from 8,946 lots the previous day. Volume on Monday was at 19.82 kg.
At 11:20 am on the Multi Commodity Exchange of India Ltd, contract for June and August gold prices per 10 grams stood at Rs9,441-42 and Rs9,623-38 respectively.