Mumbai: India gold futures may ease from their record highs this week on expectations of a recovery in dollar overseas, with investors awaiting US data for direction in the precious metals complex, analysts said.
The most-traded December gold contract on the Multi Commodity Exchange was 0.14% lower at Rs15,957 per 10 grams at 4:47pm. The contract had struck a record high of Rs16,066 in Friday’s trade.
“Gold may be in the range of Rs15,700-16,100, with a downward bias on recovery in dollar,” said Harish Galipelli, head of research with JRG Wealth Management in Kochi.
“Gold is likely to trade sideways to lower in the wake of economic data supporting dollar,” said Hyderabad-based commodity brokerage, Karvy Comtrade in a report.
“The dollar index is likely to gain on expectation that (US) durable goods orders, new home sales and personal consumption may rise,” the report added.
A strong dollar dims the yellow metal’s appeal as an alternative investment.
Traders would await the new home sales data (US) on Wednesday, along with initial jobless claims on Thursday for direction.
“This week, gold is seen sideways and may see some downside as oscillators are still weak,” said Parag Joshi, an analyst with Way 2 Wealth Securities.
“If it trades below Rs15,850, further downside could be seen till Rs15,660/15,670.”