Mumbai: India’s gold futures were down on Thursday as the dollar strengthened and crude oil weakened overseas, and analysts said it may break below the psychological mark of Rs12,000 per 10 grams.
“US Federal Reserve chairman Ben Bernanke’s comments that showed that they won’t let the dollar weaken, is still proving to be bearish for gold,” said Shailendra Kumar, head of research at Sharekhan Commodities Pvt Ltd.
Gold generally moves in the opposite direction of the dollar as the two compete for funds. On Thursday, the US currency extended its gains after Bernanke emphasised inflation concerns, signalling the central bank is done with cutting rates earlier this week.
The benchmark August gold on the Multi Commodity Exchange of India Ltd was likely to find support at Rs12,000, followed by Rs11,960, said B.G. Manjunath Prasad, technical analyst at Way 2 Wealth Securities Ltd.