MUMBAI: Gold futures edged lower in early trade on Wednesday, pressured by a strong dollar overseas, which dims the yellow metal's appeal as analternative investment, analysts said.
The most-traded February gold contract on the Multi Commodity Exchange was 0.18 percent lower at 16,903 rupees per 10 grams at 11:01 a.m., after hitting an intra-day low of 16,886 rupees.
The euro fell broadly, hitting a four-month low against the dollar on concern about Greece's fiscal problems and breaking below a key chart level that could signal a bearish trend for the currency.
"Gold is looking very dull and we are not expecting any movement to happen. It will be in the range of 16,900-17,000 rupees," said Amrut Deshmukh, senior analyst with Way 2 Wealth Securities. Open interest for February gold on MCX was at 14,225 lots, up from 14,219 a day earlier.
"Market would trade range-bound between 16,820-16,950 rupees. A break of either side would determine direction," said Murukesh Kumar, an analyst with JRG Wealth Management.
