India's gold futures may edge lower this week on a recovering dollar against the euro, dimming the yellow metal's appeal as an alternative investment, analysts said. "With dollar strengthening aggressively over the last couple of sessions, gold might suffer a setback," said Pradeep Unni, a senior research analyst with Richcomm Global Services. "Investors are moving away from gold and getting attracted to stock markets," said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai.
Gold June contract MAUM9 was 0.07 percent lower at 15,090 rupees per 10 grams at 6:48 p.m. The contract had shed 2.6 percent in the previous week.
"Selling is likely to emerge only after gold scythes the 14,900 support, which leaves the gates open for 14,300-14,000 at the least," added Unni.
"All bearish factors might take it down to 14,900 rupees," added Thiagarajan.
However, a weak rupee might limit the downside, analysts said. The Indian rupee weakened on Monday as the dollar strengthened against majors and other Asian currencies, while early losses in the domestic share market also weighed. See [ID:nBOM79010]
Analysts said traders would await ISM manufacturing, pending home sales and factory orders data from the U.S. to gauge further direction in precious metals complex. The following are the recommendations for the June contract <0#MAU:> on the Multi Commodity Exchange in rupees per 10 grams.
