MUMBAI: Gold futures edged lower on Wednesday as falling crude oil dimmed the yellow metal's appeal as a hedge against inflation, but a weak
rupee kept the downside limited, analysts said.
The most-active August contract was 0.29 percent lower at 14,712 rupees per 10 grams at 11:25 a.m.
Oil slid below $67 a barrel, extending losses from the more than $1 retreat the day before, on renewed concerns over the U.S. economy after a drop in consumer confidence and bearish API crude data.
The Indian rupee weakened into a second day on Wednesday as a lower start to the sharemarket raised worries of capital outflows and month-end dollar demand from importers also hurt.
A weak rupee makes the dollar-quoted asset expensive. "Selling pressure is likely to persist on weak crude, support is at 14,690 rupees," said Kunal Shah, assistant vice-president with Nirmal Bang Commodities.
"The overall trend is weak and if gold breaches 14,670 rupees, then it may fall to 14,564 rupees," said Anand James, senior research analyst with Geojit Comtrade in Kochi.
Open interest for August gold on MCX was at 8,963 lots, down from 9,378 a day earlier. Volume on Tuesday was 32.49 kg.
