Gold extends losses on shaky global cues

Gold extends losses on shaky global cues

Mumbai: Indian gold futures extended their losses for the fourth straight session on Friday tracking a fall in overseas markets, analysts said.

“Everybody is now pulling out money from gold to cover their losses in the equity market," said Harish Galipelli, head of research, Karvy Comtrade Ltd.

Indian shares extended losses to more than 6% on Friday after the central bank kept key rates steady in its policy review.

Overseas gold fell more than 2% on Friday as the global credit crunch and falling share prices overshadowed demand for the metal traditionally considered a safe-haven asset.

The benchmark December contract has lost more than Rs1,500 so far in October.

The only support to the market is a weak rupee, said Gnanasekar Thiagarajan, director, Commtrendz Research.

India imports most of its gold and a weak rupee makes imports expensive.

December gold is likely to get initial support at Rs11,450 and the next support at Rs11,300, Galipelli said.