Mumbai: India gold futures snapped a nine-day losing streak on Monday helped by a weaker dollar overseas, enhancing the yellow metal’s appeal as an alternative investment, analysts said.
The most-traded gold February contract was 0.58% higher Rs17,063 per 10 grams at 10:50 a.m., after losing 6.7% in the previous nine sessions.
The euro rose on the dollar after Dubai said it had received $10 billion from Abu Dhabi to help it repay a bond maturing on Monday, as currency players were forced to cover short positions.
The dollar index was 0.34% lower at 10:57 a.m.
Analysts expect the downtrend to continue in gold and traders would also look at the Federal Reserve policy meeting for direction.
“There could be a bounce back from last weeks low’s in gold, but the trend is still down,” said Murukesh Kumar senior analyst, JRG Wealth Management.
Gold may trade in the range of Rs16,930-17,100 rupees, said Kumar.
Open interest for February gold on MCX was at 16,812 lots, down from 16,881 a day earlier.
“Gold may see some downside till 16,800 (rupees) after rallying to 17,125/17,130 today,” said Gnanasekar Thiagarajan, director, Commtrendz Research.