India's gold extended losses for a second day on Wednesday in line with global weakness but a weaker rupee limited losses, analysts said.
"We expect further follow-through selling in gold," said Harish Galipelli, head of research with Karvy Comtrade in Hyderabad.
Overseas gold softened in thin year-end trade, but will be one of the few commodities to end the year firmer after an economic crisis hit demand but gave the metal safe-haven allure.
A weaker rupee prevented gold from falling much as it makes the dollar-quoted yeellow metal expensive.
There was a false breakout seen at 13,500 rupees level on Dec. 30, said Amrut Deshmukh, a technical analyst at Way 2 Wealth Securities adding that he recommends selling at 13,400 rupees with a target of 12,800 rupees and a stop loss of 13,700.
Open interest for Feb gold on MCX was at 17,384 lots, up from 17,016 a day earlier. Volume on Tuesday was 49.16 kgs.
