India's gold futures fell on Monday tracking overseas markets devoid of many buyers and analysts said the weak trend was likely to continue.
"The fact is there is a terrible shortage of funds at the moment," said Pradeep Unni, senior research analyst at Richcomm Global Services DMCC. "Every fund that is free is waiting at the bay for markets to stabilise."
Foreign gold that guides the local market fell after rising more than a percent amid government efforts to calm financial markets and a likely interest rate cut in the U.S.
The benchmark December gold on the Multi Commodity Exchange of India Ltd (MCX) is expected to find support at 11,700 rupees per 10 grams and resistance at 12,200 rupees, said Subodh Gupta, analyst at Anand Rathi Commodities.
December silver is likely to find support at 16,300 rupees per kg and resistance at 17,000 rupees, Gupta added.
