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The gold futures extended losses on Thursday morning tracking a stronger dollar overseas,which dims the yellow metal’s appeal as an alternative investment,analysts said.
The most-traded February gold contract was 0.11 per cent lower at 16,662 rupees per 10 grams at 10:28 a.m.,after losing 1.5 per cent in the previous session.
“Gold will continue to come down on strong dollar,selling could be initiated at 16,640 rupees,with a target of 16,550,” said Aurobinda Prasad,head of research,Karvy Comtrade.
The dollar surged to a four-month high after China reported strong fourth quarter growth,reinforcing fears that Beijing would take more measures to keep the economy from overheating.
Open interest for February gold on MCX was at 15,620 lots,down from 15,849 a day earlier.
Gold may trade in the range 16,550-16,800,said Tejas Seth,senior analyst with SMC Comtrade.
