Mumbai: India’s gold futures extended losses on Friday on sustained selling pressure after the previous day’s fall by over 2.5% on renewed talks of gold sales by the IMF as well as a rally in equity markets, analysts said.
The benchmark June gold contract was 0.41% lower at Rs14,631 per 10 grams at 11:18am, after hitting a low of Rs14,611 in early deals.
Discussion at a summit of G-20 world leaders about selling International Monetary Fund gold to raise extra funds refers to sales over and above existing plans, a British minister said on Thursday.
“Gold is losing its safe haven appeal and more money is chasing equity markets,” said Debjyoti Chatterjee, an associate vice-president with ADMISI Commodities in Mumbai.
“We are expecting further weakness in gold, primarily due to asset re-allocation,” said Chatterjee.
Traders would be closely watching the US manufacturing and non-farm payrolls data for direction in the complex, they added.
“Any rallies will be sold in gold now,” said Gnansekar Thiagarajan, director with Commtrendz Research.
Open interest for June gold on MCX was at 13,156 lots, up from 13,129 a day earlier. Volume on Thursday was 82.83 kg.