Gold falls towards Rs 14,000; seen correcting

“Gold may trade lower later in the session on continued profit-taking,” said Harish Galipelli,head of research with Karvy Comtrade in Hyderabad.

The benchmark April contract lost 2.9 per cent in last two trading sessions as on profit-taking after the yellow metal witnessed its contract high of 14,450 rupees per 10 grams last week.

The contract traded 6 rupees higher at 13,995 rupees at 11:30 a.m.

“Gold would dip to 13,800 rupees before resuming its uptrend,” Galipelli added.

“A healthy correction has taken place and it has made the uptrend more safe,” said a technical analyst with a Mumbai-based commodity brokerage.

Buying is recommended at 14,000 rupees,with a target of 14,600 and with a stop loss of 13,800 rupees,added the technical analyst.

Open interest for April gold on MCX was at 18,977 lots,up from 18,772 a day earlier. Volume on Tuesday was 71.41 kgs.