MUMBAI: India gold futures extended losses on Tuesday on continued profit-taking triggered by a strong rupee, after the yellow metal struck a
record high in the previous session, analysts said.
The most-traded December contract was 0.20 percent lower at 16,584 rupees per 10 grams at 10:51 am, after hitting a fresh all-time high of 16,703 rupees on Monday.
The contract had gained 4.3 percent in the previous week. The Indian rupee strengthened to a new three-week high helped by firmer stocks and currencies, but demand for the US unit from oil refiners limited further gains.
A strong rupee makes the dollar-quoted asset cheaper. "The rally seems to be overdone in gold and it would be in a corrective mode and may find support at 16,525 rupees," said Gnanasekar Thiagarajan, director, Commtrendz Research.
Supports are placed at 16,565/16,513 rupees, while resistance is pegged at 16,686/16,755 rupees, said Saritha Baby AG, an analyst with Kochi-based Geogit Comtrade. Open interest for December gold on MCX was at 15,795 lots, up from 15,765 a day earlier. Volume on Monday was 31.08 kg. Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd at 10:51 am.
