Mumbai: India’s gold futures were down on Tuesday, 7 August, on soft international prices and a strong rupee, while the market eyed a US meeting on interest rates for pricing cues, commodity brokerages said.
“Gold is likely to remain range bound,” said an analyst at IL&FS Investsmart Commodities Ltd. “People will be taking a fresh call on the dollar after the US meeting.”
The dollar usually has an inverse relationship with gold as investors choose one over the other depending on their investment appeal. Another analyst at Kotak Commodity Services Ltd. said an overall weak investment interest in commodities has contributed to the latest softening in gold prices.
The Kotak analyst said the near month gold contract on the Multi Commodity Exchange of India Ltd. (MCX) may find support at Rs8,860 per 10 grams and a second support at Rs8,845.