India's gold futures are seen extending losses this week tracking international gold which may remain under pressure on a strong dollar and absence of news in the long holiday season ahead, analysts said.
"Gold is likely to remain rangebound or slightly under pressure...in absence of major data release it will track dollar," said Vibhu Ratandhara of Bonanza Commodity Brokers Pvt Ltd.
The most-traded February gold contract was trading 0.02% higher at 16,972 rupees per 10 grams at 5:11 p.m., off an intra-day high of 16,992 rupees The contract has shed more than 7.25% since Dec. 3, when it touched an all-time high of 18,364 rupees.
Three analysts said if the resistance level of 17,300 rupees is not broken prices will remain under pressure.
International gold steadied after multi-week lows on Monday, lacking momentum as the dollar held near three-month highs, with the currency partly underpinned by concerns about debt problems in Dubai and Greece.
Last week gold fell below the psychological support level of USD 1,100 to a six-week low of USD 1,094.50, losing grip of a record high above USD 1,226 hit on December 3.
A firmer dollar usually curbs gold's appeal as an alternative investment and makes the precious metal more expensive for holders of other currencies.
No comments:
Post a Comment