India gold futures down as overseas market hits week low

India gold futures down as overseas market hits week low

Mumbai: India’s gold futures were down the second consecutive day on 4 October tracking overseas weakness and looking set to take more falls, commodity brokerages said.

“It is looking weak, but the falls may be limited," said T. Gnanasekar, director of Commtrendz Research.

Overseas spot gold dropped to its lowest in more than a week as the dollar pulled back from record lows against the euro. On Monday, gold had touched a 28-year high of $747.65 an ounce.

Gnanasekar said gold was overall still strong fundamentally and technically and may bounce back on renewed investments.

Another analyst shared the same view. “We may see all the levels of the recent highs coming back," said Tejas Parekh, senior research analyst at Motilal Oswal Commodities Broker Pvt. Ltd.

Parekh said he expected the December contract on the Multi Commodities Exchange of India Ltd. to trade between Rs9,350-9,425 per 10 grams during the day.

Gnanasekar said the contract could bounce back from somewhere between its two support levels of Rs9,320 and Rs9,285.