Gold futures were trading lower on weakness in overseas market, but firm oil prices and investment demand are likely to support the market later in the day.
MUMBAI: Gold futures were trading lower on weakness in overseas market, but firm oil prices and investment demand are likely to support the
market later in the day, analysts said.
"The market is in a consolidation phase after a sharp rise in last few sessions," said Devarsh Vakil, head of research, Anagram Capital Ltd. The benchmark December contract on MCX has gained 10 percent in the last six trading sessions.
Overseas gold fell 1 per cent after the US dollar bounced against the euro, prompting selling by investors. Oil rose to above $51 a barrel on Wednesday, after a near 7 per cent fall the previous day.
Gold generally moves in tandem with oil as the latter signals inflation, while the metal negates it. In macro-economic reports, traders will be closely watching US weekly mortgage market index data along with currency markets for further direction, analysts said.
The December contract on MCX is likely to trade in a range of 12,900-13,060 rupees, Vakil said. Open interest for December gold on MCX was at 9,612 lots, down from 9,620 a day earlier. Volume on Tuesday was 60 kg.
