Mumbai: India’s gold futures were slightly lower in early trade on Tuesday under pressure from a firm dollar, though technical buying in international gold limited losses, analysts said.
At 10:59am, the benchmark February gold on the MCX was 0.27% lower at Rs16,660 per 10 grams.
“We expect the downside to continue.... on the back of a firm dollar,” said an analyst with Nirmal Bang Commodities Pvt Ltd.
The dollar rose further against the yen on Tuesday, hitting a two-month high and keeping pressure on the euro, as year-end unwinding of short positions supported it along with higher Treasury yields.
A firm dollar takes shine from gold as an investment asset, analysts said.
International Gold prices inched up on Tuesday in a technical bounce after hitting a 6-1/2-week low, but the dollar’s firmness limited the metal’s gains amid light trading ahead of the Christmas holidays.