MCX Gold futures are expected to open slack as the trader's eye the latest drop in the prices and the interest rate hike by the Reserve Bank Of India continues to have a bearish impact. The Reserve Bank of India increased its key interest rate from 4.75% to 5.00% in an attempt to restrain the economy. It was the first rate increase since July of 2008. The domestic markets were spooked following this, as the era of easy money seemed to have gotten over. COMEX Gold was already under pressure on dollar strength and weekend profit selling and MCX April Gold slipped to its lowest intraday levels of Rs 16431 per 10 grams in the evening trades. COMEX April gold fell $19.90 to $1,107.60. A moderate rebound was witnessed in the closing hours and the MCX futures ended at Rs 16509, down Rs 259 on the day. The prices are likely to move in a tight range today with some more selling likely if Rs 16500 levels give away.
