Mumbai: Gold futures extended losses for a third day in a row on overseas markets, but a weaker rupee on Monday kept the downside limited, analysts said.
Investors awaited the European Central Bank’s policy meeting on Thursday, which is expected to give direction for euro, and consequently, gold.
Overseas gold slipped in thin trade on Monday as oil extended losses, but investors were likely to buy bullion on dips given continued global economic uncertainty.
“The outlook is a little bearish because of the euro and crude is also not sustaining gains,” said Gnanasekar Thiagarajan, director at Commtrendz Research in Mumbai.
The benchmark February gold last traded Rs41 lower at Rs13,287, after falling 0.8%. for the previous two sessions.
The rupee weakened on Monday as a further sell-off in the domestic equity market raised concerns foreigners would be wary of investing fresh funds and may withdraw their existing funds. Selling is recommended on rallies to Rs13,300 with a target of Rs13,075 and with a stop loss of Rs13,355, Commtrendz’s Thiagarajan added.
Open interest for February gold on MCX was at 14,922 lots, down from 15,045 a day earlier. Volume on Saturday was 2.13 kgs.