Mumbai: India’s gold futures were slightly changed on Thursday tracking steady foreign markets where traders squared off positions ahead of a long weekend in the US and analysts had mixed views on the future direction of the market.
US markets will be closed on Monday for Presidents’ Day.
“The outlook for gold is positive because of strong platinum and crude oil,” said Alex Mathews, head of research at Geojit Financial Services Ltd.
Platinum struck a new high on concerns over supplies from South Africa, while Venezuela’s stopping of crude sales to Exxon Mobil following a dispute, firmed up crude prices.
Bullion usually moves in tandem with crude oil as the latter dictates inflation, while precious metals, especially gold, negates it.
K.N. Rahaman, senior analyst at Way 2 Wealth Securities Ltd, said the metal may fall on likely profit taking.
“The market above $900 an ounce is not a cheap one,” he said. International spot gold traded at $907.30, off its high of $936.50 on 1 February.
Rahaman said the April contract on the Multi Commodity Exchange of India Ltd was likely to range within Rs11,650 per 10 grams and Rs11,500.
Open interest for April gold on MCX was at 11,005 lots, up from 10,834 on Wednesday.