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Gold extends losses on continued profit-taking

Gold extends losses on continued profit-taking
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First Published: Thu, Jan 29 2009. 11 53 AM IST
Updated: Thu, Jan 29 2009. 11 53 AM IST
Mumbai: India’s gold futures on Thursday extended losses for a second day on profit-taking after the yellow metal’s recent rise to a three-month high, analysts said.
“An absolute decline in demand from India would also weigh on prices,” said Debjyoti Chatterjee, associate vice-president with MAPE ADMISI Commodities in Mumbai.
India’s gold imports plunged more than 90% to just 1.2 tonnes in January 2009, from 18 tonnes at the same month last year, due to high prices and ample stocks, the Bombay Bullion Association said on Thursday.
Meanwhile, overseas gold extended losses to trade below $900 an ounce on Thursday, after registering its biggest daily percentage drop in more than two weeks the previous day, as stock markets rallied and the US Fed calmed inflation fears.
However, Chatterjee added, in the medium term, gold could gain as investors would seek flight to safety amid persistent economic worries. The benchmark February gold contract was Rs40 lower at Rs13,854 per 10 grams at 11:27am, after losing 1.4% in the previous session.
Gold is expected to correct from current levels and trade in the range of 13,500-13,960, Chatterjee added.
Investors would await US data like new home sales, jobless claims and the reaction of the dollar.
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First Published: Thu, Jan 29 2009. 11 53 AM IST
More Topics: Markets | India | Gold | Trade | Import |