Mumbai: Indian gold futures erased some of its sharp overnight gains on Friday, 7 September, with more falls expected on profit taking ahead of the weekend, commodity brokerages said.
“People may like to book profits ahead of the weekend as well as ahead of the Opec and US Fed meetings,” said Kishore Narne, vice-president, Anand Rathi Commodities.
The Opec meeting is scheduled for Tuesday, and the US Federal Open Market Committee will meet on 18 September.
Both events are crucial for gold prices, as the metal usually moves in tandem with crude oil, while it has an inverse relationship with the dollar.
Narne said the October contract on the Multi Commodity Exchange of India Ltd. (MCX) may see support at Rs9,150-9,120 per 10 grams.
Another analyst at Angel Commodities Broking Pvt. Ltd said the upside for October MCX could be seen at Rs9,200-9,210.
Open interest for the October contract on MCX was at 10,571 lots, down from 10,652 on the previous day. Volume on Thursday was at 29.74 kg.
At 10:25am in Mumbai, the October contract was trading at Rs9,175 on the Multi Commmodity Exchange (MCX), while December gold was at Rs9,288.