Mumbai: India gold futures extended losses for a fourth day on Wednesday as speculation about easing economic turmoil reduced the yellow metal’s appeal as a safe haven asset, analysts said.
The yellow metal would trade sideways to lower through the session and would wait for the US Fed meeting announcement for further direction, they added.
The benchmark April contract was 0.53% lower at Rs15,064 per 10 grams at 11:11am, after losing 1.3% in the previous three sessions.
“It’s mostly asset reallocation from gold to equities overseas on waning fears about global turmoil,” said Debjyoti Chatterjee, an associate vice-president with MAPE ADMISI in Mumbai.
“The outlook is still bearish (in the short-term) and continues to remain so,” said Chatterjee, adding “it would be still in a range.”
“We will also have to see how gold would react to FOMC meeting,” added Chatterjee.
“Gold may head towards 14,985 today,” said Gnanasekar Thiagarajan, director with Commtrendz Research, adding the upside would be capped at 15,250-15,300.
Open interest for April gold on MCX was at 15,503 lots, down from 15,993 a day earlier. Volume on Tuesday was 55.44 kg.