Mumbai: India’s gold futures extended losses on Thursday on overseas leads and further pressured by a firmer rupee, analysts said.
Overseas gold dropped slightly tracking a falling euro, but strong investment demand was likely to support prices, with ETF holdings hitting another record as fears about a worsening global recession lingered.
“Market is still in positive mode,” said Debjyoti Chatterjee, associate vice-president at MAPE ADMISI Commodity Research, adding gold may not see a downfall from here.
Buying is recommended above Rs13,400 with a target of Rs13,700 and with a stop loss of Rs13,360, Chatterjee added.
The February gold contract traded Rs32 lower at Rs13,428 per 10 grams at 11:17am, after falling marginally in the previous session.
“Our view is bullish (in gold), but the rally will be restricted to Rs14,100,” said a technical analyst at a Mumbai-based commodity brokerage.
Open interest for Feb gold on MCX was at 15,202 lots, down from 15,418 a day earlier. Volume on Wednesday was 63.22 kgs.