Mumbai: Gold futures are likely to extend gains and inch nearer to its record high this week, helped by safe-haven buying overseas and reviving physical demand, analysts said.
“The trend continues to be bullish. There could be profit-taking initially, but we would remain on the buying side due to Mid East tensions,” said Aurobinda Prasad, head of research, Karvy Comtrade.
Buying could be done at 20,840, targeting 21,000, said Prasad.
At 11:38am, the most-active gold for April delivery on the Multi Commodity Exchange (MCX) was steady at Rs 20,924 per 10 grams, not far off from the record high of Rs 21,157 hit on 24 February.
International gold prices have been on an uptrend, just shy off the peak, as traders sought refuge in the safe-haven asset on continuing Middle East tensions.
Forces loyal to Libyan leader Muammar Gaddafi were massed near the Tunisian border on Tuesday, as the United States said it was moving warships and aircrafts closer to Libya, heightening tension in the volatile region.
Revival in wedding demand in India, the world’s largest consumer of the yellow metal, could help prices, dealers said.
Harvesting and wedding season are underway in India, which could push up demand.