Gold futures seen falling from two-month high

NDTV Profit Desk

12 Jun 2013, 12:44 AM IST

Gold futures in India are expected to fall from their two-month high hit on Tuesday, weighed down by speculations that the era of ultra-loose global monetary policy may end, along with demand concerns in the physical market.

Successive rounds of stimulus measures around the world have boosted gold prices to record highs in recent years by keeping up pressure on interest rates while stoking inflation fears.

At 9.53 p.m., the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was down 0.52 per cent at Rs 27,866 per 10 gram, after hitting a high of Rs 28,288 earlier in the session, a level last seen on April 12.

"We expect a healthy correction in gold and silver," said Navneet Damani, associate vice-president of Motilal Oswal Commodities Pvt Ltd.

Selling is advised in gold at Rs 28,200, targeting Rs 27,0125/26,880, with a stop loss at Rs 28,465, said Mr Damani.

In a bid to curtail gold demand, India raised import duty to 8 per cent after a ban on consignment imports by banks, state-run and premier trading houses. India's festival and wedding season has ended and will re-start in August.

Silver for July delivery was 1.34 per cent lower at Rs 43,570 per kilogram.

Selling is advised below Rs 43,500, for target towards Rs 42,700-42,500 with stop loss above Rs 44,200, he said.