Mumbai: India’s gold futures were little changed on Thursday as overseas markets remained nearly flat ahead of interest rate decisions by the Bank of England and European Central Bank, but analysts said an upside is likely as the metal was finding support at dips.
“Gold is being driven by currencies in the last few days... there should be some new direction in the evening after the rate decisions,” said an analyst at IL&FS Investsmart Commodities Ltd.
Policymakers in both the central bank will meet on Thursday to decide on interest rates. Rate changes may move the dollar, which in turn could move gold as the two usually have an inverse relationship with investors choosing one over the other.
Another analyst, Harish Galipelli, head of research at Karvy Comtrade Ltd said an upside bias was expected as gold had recovered sharply from its dips the previous day.
Gold has eased since its rally to a lifetime high of $936.50 an ounce on 1 February, but analysts said the factors that fuelled its rise, concerns over economic growth in the US and credit market problems, continue to support the metal.
Galipelli said the April gold on the Multi Commodity Exchange of India Ltd could range within Rs11,430 per 10 grams and Rs11,550. Open interest for April gold on MCX was at 11,111 lots, down from 11,203 on the previous day. Volume on Wednesday was at 62.02 kg.