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Wednesday January 7, 11:30 AM
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India gold futures lower as dollar gains
MUMBAI (Reuters) - India's gold futures traded lower on Wednesday dragged down by a stronger dollar against the euro, dimming the yellow metal's appeal as an alternative investment, analysts said.
"A stronger dollar is signalling a bearish picture in gold for the short-term," said Debjyoti Debjyoti Chatterjee, associate vice-president, MAPE ADMISI Commodity Research in Mumbai.
The dollar held on to the previous day's gains on Wednesday amid hopes for an aggressive stimulus package from the Obama administration.
The benchmark MCX February gold traded lower by 10 rupees at 13,365 rupees per 10 grams, after closing marginally higher by 0.35 percent at 13,375 rupees in the previous session due to short-covering.
Selling is recommended at 13,300-13,400 rupees, with a target of 13,100 rupees and a stop loss of 13,460 rupees, Chaterjee added.
Open interest for Feb gold on MCX was at 15,006 lots, up from 14,855 a day earlier. Volume on Tuesday was 64.6 kg.
