RTRS: India gold eases on profit-booking; Fed meet eyed
India gold futures eased on Wednesday, after hitting a three-month high in the last session, as investors chose to lock in profits, analysts said.
Investors would eye the outcome of a Federal Open Market Committee meet slated later in the session to gauge direction in the precious metals complex, analysts said. See [ID:nN27471774]
"It would be the fear of economic uncertainty that would be basic driver for higher prices," said Subodh Gupta, an analyst at Anand Rathi Commodities, adding that prices may reach to 15,500 rupees per 10 grams by the end of the quarter to March.
The contract may trade in the range of 13,950-14,200 rupees for the day, Gupta added.
MCX gold futures on the continuation charts MAUc1 was 84 rupees lower at 14,011 rupees at 11.45 a.m., after a three-month high of 14,214 rupees in the previous session.
The contract is still in a striking distance of its all-time high of 14,320 rupees per 10 grams struck on Oct. 10.
"Any small correction should be considered as an opportunity to buy gold," said a technical analyst at a Mumbai-based commodity brokerage, adding the breakout has already taken place. Buying is recommended at 14,000 rupees, with a target of 14,700 rupees and with a stop loss of 13,700, the technical analyst added.
Open interest for Feb gold on MCX was at 12,640 lots, down from 12,683 a day earlier. Volume on Tuesday was 50.4 kgs.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:45 p.m. <0#MAU:>:
