Mumbai: Indian gold futures yo-yoed on Thursday tracking overseas gold that gave up early gains as markets waited for important economic indicators in the US that could indicate the metal’s future direction, analysts said.
Markets would eye the US consumer price index and jobless claims for further cues on the outlook for the dollar that usually has an inverse relationship with gold.
“The rally in gold yesterday was because of a rise in the euro against the dollar,” said Amar Singh, head of research at Angel Commodities Broking Pvt. Ltd.
Singh said worries over the US housing sector and credit market continued to weigh on the dollar and that could support gold.
Another analyst said an expected fall in US crude oil inventories data could be an added support for gold.
An analyst at Emkay Commotrade Ltd, Safdar Golwala, said the December gold contract on the Multi Commodity Exchange of India Ltd. might target Rs10,380 per 10 grams, while Angel’s Singh saw it higher at Rs10,420.