MUMBAI, March 20 (Reuters) - India gold futures are likely to fall this week on waning safe-haven appeal of the yellow metal, and higher dollar overseas, analysts said.
Gold for April delivery on the Multi Commodity Exchange (MCX) was 0.39 percent lower at 27,792 rupees per 10 grams.
“Good U.S. economic data has erased the safe-haven premium for gold and dollar strength will also weigh,” said Gnanasekar Thiagarajan, director with Commtrendz Research.
The yellow metal has started to lose its appeal with upbeat U.S. data in recent months increasing investor confidence in the recovery of the world’s largest economy.
Sell gold on rallies to 27,950-28,000, targeting 27,450, with a stop loss 28,200 rupees, said Thiagarajan.
The dollar edged up against a basket of currencies, supported on safe-haven demand as risk sentiment soured, and making strong gains against the Australian dollar amid concerns that China’s appetite for raw materials could be slowing.
Dollar and gold often move in opposite direction as the two compete for funds overseas.
Weak physical demand due to ongoing strike called by jewellers to oppose the duty hike could also weigh on prices.
Silver, which fell by a percent on Monday, could also follow the trend in gold, analysts said.
Silver for May delivery fell 0.93 percent lower at 56,970 rupees per kg, after hitting a low of 56,854 rupees.
Selling is advised in silver to 57,300 rupees, with a stop loss of 57,700, targeting 56,000 rupees, said Thiagarajan. (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil)