Mumbai: India gold futures were steady with a negative bias on Thursday on falling crude oil, dimmimg the yellow metal’s appeal as a hedge against oil-led inflation, analysts said.
The most-traded October gold contract on the Multi Commodity Exchange (MCX) was down 0.05% at Rs15,829 per 10 grams at 11:29am, after hitting a low of 15,796 in early deals.
The contract is still down 1% from its seven-month high of Rs16,009 struck last week, when a weak dollar spurred buying in the yellow metal.
Oil prices extended losses and fell closer toward $68 a barrel, as data showing an unexpectedly high build up in US oil and products stockpiles reminded traders that oil prices may have run ahead of the demand fundamentals.
Traders would continue to eye the movements in dollar, which softened against higher yielding currencies, for direction in the precious metals complex, they added.
“Trading range would be Rs15,766-15,886,” said Krishna Reddy, an analyst with Way 2 Wealth Securities.
“Gold may consolidate here in the range of 15,600-16,000 (rupees) before a move up,” said Gnanasekar Thiagarajan, director, Commtrendz Research in Mumbai.