Mumbai: India’s gold futures rose on 26 June as foreign markets bounced back on bargain hunting after the US kept interest rates unchanged, but analysts said, chances are, it may give up gains later.
“There might be some selling to liquidate long positions built up over the last one week,” said K.N. Rahaman, deputy research head at Way 2 Wealth Securities Ltd.
A stronger rupee against the dollar would also keep precious metals from rising much as most of India’s gold is imported and paid for in dollars, another analyst said.
“The benchmark August contract on the Multi Commodity Exchange (MCX) was seen facing resistance at around Rs12,436 per 10 grams and support at Rs12,240,” said Anuj Goel, research associate at Kotak Commodity Services Ltd.
Silver futures were also expected to follow suit with the Fed’s decision clearing the near-term direction, analysts said.