Mumbai: India gold futures may extend gains for a second consecutive week on the back of expectations of a weaker dollar overseas and continued domestic wedding season demand, analysts said.
“The view is bullish on gold on strong euro and crude oil prices,” said Gnanasekar Thiagarajan, director, Commtrendz Research.
The most-active June contract on the Multi Commodity Exchange was trading 0.42% lower at Rs16,489 per 10 grams at 5:06pm, paring gains of 0.6% registered last week, when a weaker dollar spurred buying.
“Buying could be done at 16,460 for a target of 16,600, maintaining a stop loss of 16,380 rupees,” said Thiagarajan.
The dollar index, a gauge of greenback’s performance against a basket of currencies, was 0.15% lower at 81.170 at 5:06pm. A weak dollar enhances the yellow metal’s appeal as an alternative investment.
Physical traders have shown interest in stocking up for weddings and upcoming festival season at around $1,110 an ounce.
“Buy above Rs16,600 targeting Rs16,750, stop loss at Rs16,540,” Hyderabad-based commodity brokerage Karvy Comtrade said in a report.