MUMBAI: Gold futures traded almost flat on Monday as support from a weak rupee was offset by softer prices overseas, analysts said. The most active August contract was 0.18 per cent lower at 14,608 rupees per 10 grams at 11:23 am.
The contract had shed about 1.7 per cent in the previous week on a strong dollar overseas and waning safe-haven appeal. A weak rupee makes the dollar-quoted asset expensive. The Indian rupee weakened as the dollar edged higher against major units, and traders braced for profit-taking in the local stock market.
At 11:23 am, Comex August gold traded 0.54 per cent lower at $957.4 an ounce, triming earlier losses. "Gold may face selling pressure on strong dollar overseas and profit-taking," said Kunal Shah, an assistant vice-president with Nirmal Bang Commodities.
"We expect some follow-through selling in gold," said Harish Galipelli, head of research with Karvy Comtrade. Gold may trade in the range of 14,500-14,720 rupees, said Galipelli. Open interest for August gold on MCX was at 14,117 lots, up from 14,038 a day earlier.
