Mumbai: The gold futures fell after a higher opening on Tuesday on sustained selling and further pressured by a recovering rupee, analysts said. “There is sustained selling pressure as gold cleared a strong technical support of Rs13,100 yesterday,” said Harish Galipelli, head of research with Hyderabad-based Karvy Comtrade.
Meanwhile, overseas gold rebounded on Tuesday on bargain hunting after touching its lowest in a month the previous day, with dealers also noting buying interest from jewellers in Asia ahead of the Lunar New Year holidays later in January. The benchmark February gold contract traded lower by Rs71 at Rs12,923 per 10 grams at 11:39am, after falling 3.2% in the previous three sessions.
Traders will now await the outcome of Thursday’s European Central Bank meeting to gauge direction in the precious metal complex.
Rupee recovered from an early slide on Tuesday as gains in the domestic stock market raised hopes for foreign fund inflows, but broad dollar strength overseas could prevent sharp gains. Gold may trade in the range of 12,650-13,100 for the day, added Karvy’s Galipelli.
Open interest for February gold on MCX was at 13,941 lots, up from 13,808 a day earlier. Volume on Monday was 71.33 kgs.