Gold seen falling further from one-week low

MUMBAI Tue Feb 12, 2013 6:36pm IST

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008. REUTERS/Parth Sanyal/Files

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008.

Credit: Reuters/Parth Sanyal/Files

Related Topics

MUMBAI (Reuters) - Indian gold futures are likely to fall further from their lowest level in a week in the next few sessions on expectations of a stronger dollar, which acts as an alternative to the yellow metal.

At 6 p.m., the actively traded gold for April delivery on the Multi Commodity Exchange (MCX) was 0.14 percent lower at 30,597 rupees per 10 grams, after hitting a low of 30,530 rupees, a level last seen on February 4.

"Even a mild strengthening of the dollar could lead to a sell-off in precious metals. This indicates underlying weakness in gold," said Gnanasekar Thiagarajan, director of Commtrendz Research.

Selling is advised in gold on rallies to 30,650 rupees, with a stop-loss of 30,800, targeting 30,250, said Thiagarajan.

The dollar index rose to a one-month high against a basket of currencies on Tuesday, helped by its gains versus the euro.

The dollar often moves in the opposite direction to gold as the two compete for investments overseas.

The most-active silver for March delivery on the MCX was 0.39 percent lower at 57,439 rupees per kg.

Selling is advised in silver on rallies to 57,800 rupees, with a stop-loss of 58,200, targeting 56,700, said Thiagarajan.

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

FILED UNDER:

Reuters Showcase

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Market Eye

Market Eye

Sensex, Nifty end higher after bumpy budget-day trading  Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage