Mumbai: India’s gold futures were lower on the Multi Commodity Exchange of India Ltd (MCX) on Wednesday even as foreign markets recovered after seeing prices at their weakest levels in nearly one year.
Analysts said more falls were in store that could take the metal closer to a psychological mark of Rs11,000 per 10 grams.
“Gold and silver look down.. they have broken their support lines,” said an analyst at Karvy Comtrade Ltd.
Foreign gold pared early losses recovering from its lowest level since October 2007 as crude oil staged a rebound. Gold generally moves in tandem with crude oil as the latter signals inflation, while the metal negates it.
“The benchmark October gold was seen ranging between Rs11,180 and Rs11,500,” Somnath Dey, incharge, metals and energy research, at Religare Commodities Ltd said.
Open interest for October gold was at 10,996 lots, up from the previous day’s 10,419. Volume on Tuesday was at 76.6 kg.
“December silver on the MCX was seen ranging within Rs17,700 per kg and Rs18,700,” Dey added. The contract traded at Rs18,514.