Mumbai The shine is wearing thin. India gold futures may extend losses for a third week in a row, falling from a record high early last month on continued profit-taking, analysts said. The most-active August gold contract was trading 0.26 percent lower at 18,487 rupees per 10 grams at 4:55 p.m. on Monday, after losing more than 1.5 percent in the previous two weeks. The contract had gained 2.5 percent in June notching an all-time high of 19,198 rupees on June 8.
Selling on rise would be the strategy this week, there will be profit-taking after the recent run-up in prices on safe haven buying, there will be adjustments, said Gnanasekar Thiagarajan, director, Commtrendz Research.
Gold may continue its correction to 18,100/18,000 rupees levels, selling could be done at 18,500, targeting 18,100/18,000 rupees, said Somnath Dey, in-charge metals and energy research with Religare Commodities.
However, continued bargain-buying by jewellers could limit the downside, they added.
India physical gold volumes retreated from a pick-up witnessed on Friday as a nationwide strike hurt demand.
There were a few deals since morning as prices are still attractive, but we are not getting enough business since many branches are shut, said a dealer with a state-run bullion dealing bank in Mumbai.
