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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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