India gold futures dive on stocks, more slides seen

India gold futures dive on stocks, more slides seen
Comment E-mail Print Share
First Published: Tue, Jan 22 2008. 02 06 PM IST
Updated: Tue, Jan 22 2008. 02 06 PM IST
Mumbai: India’s gold futures were down on Tuesday as a global equities sell-off, weaker crude and a stronger dollar triggered profit-taking, and further falls could be expected during the day, analysts said.
“There is a lot of insecurity and margin calls in stocks are making people get out of all asset classes,” said T. Gnanasekar, director at Commtrendz Research.
“Gold won’t be an exception.”
Gold suffered from the huge fall in stocks worldwide, as typically in such situations, investors sell gold to meet immediate commitments in stocks.
Fears of a recession in the US was the main reason for the heavy sell-offs in stocks.
Another analyst Alex Mathews, head of research at Geojit Financial Services Ltd, said February gold on the Multi Commodity Exchange of India could find supports at Rs10,920 per 10 grams and Rs10,874.
Feb MCX briefly broke below its psychological mark Rs11,000 late on Monday after seeing its alltime high at Rs11,533 on 15 January.
Open interest for Feb gold on MCX dropped to 9,568 lots, from 9,939 on Monday. Volume on Monday was 36.83 kg.
Comment E-mail Print Share
First Published: Tue, Jan 22 2008. 02 06 PM IST
More Topics: Gold | Commodities | Markets | Shares | Stocks |