Mumbai: India’s gold futures were down marginally on Monday, 27 August, tracking overseas markets and a slightly stronger rupee, commodity brokerages said.
“Initially it may fall a bit to correct itself,” said T. Gnanasekar, director at Commtrendz Research, but he added “I am bullish for the day.”
Gnanasekar said he expected gold to rise as the dollar, with which the metal usually has an inverse relation, looked weak. He also said strong demand for physical gold was expected in India and that would support prices.
The October contract on the Multi Commodity Exchange of India, which was ruling at Rs8,895 per ten grams in the afternoon, could test Rs8,950 within the day, he said.
The December contract was quoted at Rs9,014.
Another analyst at Vision Commodities Services DMCC said markets may remain flat owing to a UK holiday, with “volatility reserved for the evening session.”