Gold falls to Rs 16,709 per 10 grams

The Indian rupee rose for a second straight day rising to more-than-one-week high on the back of a 1-per cent gain in the sharemarket early and tracking higher regional peers.

“Gold could undergo a phase of consolidation before a move up or down,support could be seen at 16,450/16,500,” said Gnanasekar Thiagarajan,director,Commtrendz Research.

Economists polled by Reuters are looking for a slim gain in US payrolls in January,though it is not expected to be enough to put a dent in the 10 per cent unemployment rate.

“Gold might trade sideways and could trade in the range of Rs 16,710-16,800,” said Aurobinda Prasad,head of research,Karvy Comtrade.

Open interest for April gold on MCX was at 13,505 lots,down from 13,664 a day earlier.