MUMBAI: India gold futures edged lower on Thursday morning to hit a near three-month low, weighed by a stronger dollar overseas, dimming the yellow metal's appeal as an alternative investment, analysts said.
The most-traded gold February contract on the Multi Commodity Exchange (MCX) was trading 0.31 percent lower at Rs 16,390 per 10 grams at 10:44 a.m., after hitting a low of Rs 16,341, a level last seen on Nov. 3.
"Trading bias would on the downside on gaining dollar index at a multiple-month high, gold may trade in the range of 16,325-16,500," said Murukesh Kumar, analyst with JRG Wealth Management.
The dollar index, the gauge of greenback's performance against the basket of currencies, was 0.08 percent higher at 78.739.
Selling is recommended at Rs 16,410, with a target of Rs 16,330, with a stop loss of Rs 16,450, said Aurobinda Prasad, head of research, Karvy Comtrade.
Open interest for February gold on MCX was at 11,242 lots, down from 11,298 a day earlier. |
