India gold futures extended losses for a fourth day on Monday as surging regional equity markets signalled abating economic worries, dimming the yellow metal's appeal as a safe haven investment, analysts said. Gold was also pressured by a strong rupee, making the dollar-quoted asset cheaper, they added. The benchmark June gold contract was 1.96 percent lower at 14,192 rupees per 10 grams at 11:10 a.m., after having lost 4.1 percent in the previous three sessions. The Indian rupee strengthened past 50 per dollar in early trade on Monday, its strongest in more than a month, on expectations local shares may rise following the lead of regional markets. "We have seen substantial shift in investment from gold to equities," said K.N. Rahaman, deputy research head, Way 2 Wealth Securities in Mumbai. "Rising equity markets is pressuring gold along with IMF gold sale news," said Gnansekar Thiagarajan, director with Commtrendz Research in Mumbai. Planned International Monetary Fund gold sales agreed by the G20 to raise money for low-income countries apply only to the 403 tonnes already approved last year and are not additional, an IMF spokesman said on Friday. Selling is recommended on rise, with a stop loss of 14,500 rupees and with an initial target of 13,800 rupees, said Rahaman. The next support is pegged at 14,025/13,885 rupees, added Thiagarajan. Open interest for June gold on MCX was at 13,053 lots, down from 13,184 a day earlier. Volume on Saturday was 3.43 kg.

Source