MUMBAI: India gold futures extended losses for the second day on continued profit-taking on Wednesday, after a new record high struck last
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month, analysts said.
"Currently, the market is very volatile," said Debjyoti Chatterjee, an associate vice-president with MAPE ADMISI in Mumbai. "Traders with deep pockets, who can ride the volatility, can remain in the market."
"There could be some weakness in gold in the early trade, but further moves would be US data dependent," Chatterjee added.
Analysts said traders would be awaiting the US ISM non-manufacturing data and mortgage market index slated to be released later in the day to gauge direction in the precious metals complex.
"Basically, risk aversion is fading," said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai, adding "We should see a low of 15,075 in gold and then it should recover."
"Gold going below 15,000 looks very unlikely," added Thiagarajan.
The benchmark April contract was 0.37 percent lower at 15,211 rupees per 10 grams at 11:36 a.m., after hitting a low of 15,175 rupees earlier.
The contract had struck an all-time high of 16,040 on Feb 20. Gold may trade in the range of 14,950-15,450 rupees for the day, said Amar Singh, head of research with Angel Commodities.
Open interest for April gold on MCX was at 16,548 lots, down from 16,641 a day earlier. Volume on Tuesday was 79.67 kg.
