Mumbai: India’s gold futures fell on Friday, after having seen a record high earlier this week, as overseas investors sold gold to cover margin calls in stocks and softer crude oil added bearish pressure, analysts said.
“Overall it is in a selling mode again,” said an analyst at IL&FS Investsmart Commodities Ltd. “But it may bounce back again after testing its supports.”
Another analyst, K.N. Rahaman, senior analyst at Way 2 Wealth Securities Ltd, said the benchmark February gold on the Multi Commodity Exchange of India Ltd (MCX) could test Rs11,000 per 10 grams.
“But I am not bearish, slowly it can recover,” Rahaman added.
The factors that backed gold’s rally — chances of a rate cut in the US and the growing clout of the commodities asset class — are likely to continue supporting gold, the analysts said.
February gold on MCX was down for the third straight day after touching a record high of Rs11,533 on Tuesday.
Open interest for the February gold on MCX was at 11,957 lots, up from 11,794 on Thursday. Volume the previous day was at 58.734 kg.