Mumbai:Gold futures were up slightly up on Monday and were expected to stay within a tight range in the absence of triggers, specially from the US markets that were closed for a holiday.
“The next big trigger will be the US inflation data,” said Kunal Shah, analyst at Motilal Oswal Commodities Broker Pvt Ltd. The US inflation data is expected on Wednesday. Higher numbers may boost gold which is known as a good hedge against inflation. Monday is a holiday in the US, one of the biggest guides for gold, for Presidents’ Day.
Gold prices have moved nearly sideways in the last few sessions waiting for fresh cues after touching a historic high at $936.50 an ounce on 1 February. On Monday, spot gold was at $906.
Another analyst, Somnath Dey, head of metals and energy research at Religare Commodities Ltd also said gold may stick to a narrow range with the April contract on the Multi Commodity Exchange of India Ltd likely to range within Rs11,450 per 10 grams to Rs11,680.