Gold eases on profit-taking

Gold eases on profit-taking

Mumbai: Gold eased from its previous day’s highs on Tuesday on profit-taking, analysts said.

“It may come down further to Rs13,470-13,480 levels due to profit-taking," Devarsh Vakil, manager research at Ahmedabad-based Anagram Capital, said.

Overseas gold steadied above $870 on Tuesday, hovering within sight of a 11-week high hit the previous day, with sentiment underpinned by conflict in the Middle East, firm oil prices and a weaker US dollar.

The benchmark February gold contract on the Multi Commodity Exchange last traded at Rs13,570 per 10 grams, down 0.48%. The contract closed the previous session 1.8% higher at Rs13,635 per 10 grams after an intra-day high of Rs13,790.

Analysts said the overall tone for the yellow metal is still bullish on expectations of further weakening of dollar and rising crude oil.

Buying is recommended at 13,500 with a target of 3,700 and with a stop loss of 3,450, Vakil added.

Open interest for February gold on MCX was at 17,126 lots, up from 16,994 a day earlier. Volume on Monday was 51.87 kgs.