India's gold futures were down on Thursday as the dollar strengthened and crude oil weakened overseas, and analysts said it may break below the psychological mark of 12,000 rupees per 10 grams.
U.S. Federal Reserve chairman Ben Bernanke's comments that showed that they won't let the dollar weaken, is still proving to be bearish for gold, said Shailendra Kumar, head of research at Sharekhan Commodities Pvt Ltd.
Gold generally moves in the opposite direction of the dollar as the two compete for funds. On Thursday, the U.S. currency extended its gains after Bernanke emphasised inflation concerns, signalling the central bank is done with cutting rates earlier this week.
The benchmark August gold on the Multi Commodity Exchange of India Ltd (MCX) was likely to find support at 12,000 rupees, followed by 11,960 rupees, said B.G. Manjunath Prasad, technical analyst at Way 2 Wealth Securities Ltd.
Open interest for August gold was at 7,391 lots, down from 7,792 on Wednesday. Volume on the previous day was at 39 kg.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:52 a.m. :
Contract Current price Net change
August 12, 143 -58
October 12, 180 -67
(Reporting by Ruchira Singh)
© Thomson Reuters 2008. All rights reserved.