Mumbai: Indian gold futures were down on Monday as weaker crude oil and a slightly firmer dollar eased inflationary fears that usually prop up precious metals.
“It is a correction from its all-time highs triggered by a weaker crude oil, easing inflationary concerns, US’s measures to boost liquidity in the system,” said Somnath Dey, incharge - metals and energy research, at Religare Commodities Ltd.
Overseas gold, which guides the Indian market, was slightly higher on bargain hunting, but easing crude oil prices, after the restart of a crude pipeline system in Iraq, eased supply fears.
Gold is down 9% from its record high level of $1,030.80 an ounce on 17 March.
The June gold contract on the Multi Commodity Exchange of India Ltd was seen finding support at Rs11,985 per 10 grams and resistance at Rs12,110, said Kunal Shah, analyst at Motilal Oswal Commodities Broker Pvt Ltd.
Open interest for June gold was at 4,167 lots, up from 4,085 on Saturday. Volume on the previous session was at 713 grams.