Mumbai: The gold futures may trade higher this week mainly helped by a weaker dollar overseas, which enhances the yellow metal’s appeal as an alternative investment, coupled with bargain-buying, analysts said.
The most-traded February contract was 0.37% higher at Rs16,548 per 10 grams at 4:34 pm. The contract had shed more than 2% last week. It had hit a two-and-half month low of Rs16,351 on Friday.
“Potential dollar weakness will help gold this week, we suggest to buy on dips to 16,450, for a target of 16,660/16,830,” said Praveen Singh, an analyst with Sharekhan Commodities.
The dollar slipped against the euro and higher-yielding currencies on Monday as some investors took profits on the US currency’s broad gains last week, which had been fuelled by risk aversion.
“Gold could be brought around Rs16,600, with a target of 16,790, maintaining a stop loss of Rs16,440,” said Parag Joshi, an analyst with Way 2 Wealth Securities.