Gold slips; US stimulus package eyed

Gold slips; US stimulus package eyed
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First Published: Mon, Feb 09 2009. 12 39 PM IST
Updated: Mon, Feb 09 2009. 12 39 PM IST
Mumbai: The gold futures fell for a second day on Monday on selling pressures from the investors. It was also under pressure from a firm rupee.
The benchmark April gold was quoted at Rs14,116 per 10 grams, down Rs65 at 12 noon, after falling Rs36 on Saturday.
The contract had gained 1.62% in the past three sessions.
“Gold will be more or less range-bound” and may be confined to Rs14,022-14,177 band for the day, said Subodh Gupta, an analyst with Anand Rathi Commodities in Mumbai.
Analysts said investors would be closely watching the massive stimulus package planned by the US.
Top aides to President Barack Obama have been urging Democratic and Republican lawmakers to set aside political differences and quickly approve the package.
The rupee rose to three-week highs on Monday on hopes of rise in capital inflows following a rebound in Asian stock markets, but dollar buying by oil refiners is seen checking sharp gains.
Gold may consolidate from current levels and trade in the ranges of Rs13,800-14,200, said Debjyoti Chatterjee, associate vice-president with MAPE ADMISI Research.
“If it breaches the resistance of Rs14,177 than we expect gold to move towards Rs14,300,” Gupta added.
Open interest for April gold on MCX was at 19,360 lots, down from 19,521 a day earlier. Volume on Saturday was 2.23 kgs.
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First Published: Mon, Feb 09 2009. 12 39 PM IST
More Topics: Gold | Bullion | Commodity | Stimulus Package | Markets |