Mumbai, January 28: 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 16,390 rupees per 10 grams at 10:44 a.m., after hitting a low of 16,341 rupees, 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 16,410 rupees, with a target of 16,330 rupees, with a stop loss of 16,450 rupees, 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.
—Agencies