Gold down for the third consecutive day

Indian gold market remains into red territory for the third consecutive day. The market remains down by Rs 29 per 10 gm at Rs 12615 in the early session Thursday on weak crude oil price. Crude oil at New York Mercantile Exchange traded below $125 per barrel and drag down the gold futures as it remains less lucrative as hedge tool against oil led inflation. Crude oil remains down after a report reveals the low consumption of oil in US and Japan.

The Gold Aug contract in the last session managed to close above the trend line support although in the early session Thursday it traded below the trend line support and is expected to test lower range of Rs 12480 at least. Higher open interest and volume with negative candle is likely to keep the market down. The market lost around Rs 800 in this week so far.

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