MUMBAI: Gold futures may extend losses this week on year-end profit-taking, triggered by expectations of a strong dollar overseas, analysts said.
"Gold is likely to extend its correction due to dollar recovery, which may lead to profit-taking and long liquidation," said Harish Galipelli, head of research with JRG Wealth Management.
The most-traded February gold contract was trading 0.06 per cent higher at 16.975 rupees per 10 grams at 4:39 pm, off their intra-day high of Rs 17,116. The contract shed more than 6.5 per cent in the previous nine trading sessions.
The contract gained 12.6 per cent since the start of November to December 3, when it touched an all-time high of 18,364 rupees.
Selling is recommended at Rs 17,200, with a stop loss of Rs 17,285 and targeting Rs 16,800, said Galipelli.
The euro rose against the dollar on Monday after Dubai's announcement it had received help from Abu Dhabi to repay its debts warmed risk appetite.
Analysts said traders would also await direction from the two-day Federal Reserve policy meeting, starting Tuesday.
"We might see some reaction on Fed's comments on the economy," said Pranav Mer, an analyst with India Infoline in Mumbai.
