Mumbai: India gold futures extended losses for a second day on Wednesday following foreign markets, where technical selling weighed on the yellow metal, and further pressured by a strong rupee, analysts said.
The most traded gold June contract was 0.28% lower at Rs14,475 per 10 grams at 11:18am, after having lost 1.3% in the previous session.
Overseas investors also squared positions ahead of a Federal Reserve meeting and US GDP data.
The Fed is expected to leave interest rates unchanged, but markets will be looking for any extension of quantitative easing and for assessments for any early signs of a recovery in the United States.
The Indian rupee rose on Wednesday from one-week lows as the dollar’s weakness against major currencies and gains in local and regional stock markets boosted sentiment.
“All eyes would be now to the FOMC’s after word on the economy,” said Amar Singh, head of research with Angel Commodities. Gold would trade in the range of Rs14,300-14,600.
“Gold would consolidate for sometime in the range of Rs14,450-14,700,” said Gnanasekar Thiagarajan, director with Commtrendz Research.
Open interest for June gold on MCX was at Rs14,636 lots, up from Rs14,505 a day earlier. Volume on Tuesday was 42.44 kg.