Mumbai: India’s gold futures were down on the Multi Commodity Exchange of India Ltd (MCX) on Wednesday, as prices dropped to their lowest level in seven weeks owing to weaker crude oil and a rising dollar overseas, analysts said.
“I am expecting a pull-back after the fall,” said Subodh Gupta, analyst at Anand Rathi Commodities.
Foreign gold, that guides the local market, slipped on the back of crude oil that was affected by worries surrounding demand. But conflicts in Nigeria and Iran’s nuclear dispute had the potential to fire it up again, analysts said.
“The benchmark October gold on the MCX was seen finding support at Rs12,000 per 10 grams and resistance at Rs12,260,” said Vikas Vaid, assistant vice president at Asit C. Mehta Commodity Services Pvt Ltd.
Open interest for October gold was at 10,918 lots, up from 10,559 on Tuesday. Volume on the previous day was at 59.52 kg.