Mumbai: India gold futures may trade sideways to higher this week on expectations of further weakness in the dollar overseas, which enhances the yellow metal’s appeal as an alternative investment, analysts said.
The February gold contract was 0.01% lower at Rs16,850 per 10 grams at 4:37pm, “Dollar may act in support of gold this week and further buying could be seen as gold is trading near its support levels,” said Pranav Mer, an analyst with India Infoline in Mumbai.
The dollar index, a gauge of the greenback’s performance against six other major currencies, was at 77.128 versus Friday’s US close of 77.323.
“Buying could be done at Rs16,820/16,830, with a target of Rs16,950/17,000, with a stop loss of Rs16,790,” said Mer.
February gold struck an all-time high of Rs18,364 last month, when a weak dollar spurred buying in the yellow metal.
“We could see sideways movement in gold this week, the upside could be seen till Rs17,000, while support is pegged at Rs16,650,” said Harish Galipelli, head of research with JRG Wealth Management.