India gold futures seen falling further

The shine is wearing thin. India gold futures may extend losses for a third week in a row,falling from a record high early last month on continued profit-taking,analysts said. The most-active August gold contract was trading 0.26 percent lower at 18,487 rupees per 10 grams at 4:55 p.m. on Monday,after losing more than 1.5 percent in the previous two weeks. The contract had gained 2.5 percent in June notching an all-time high of 19,198 rupees on June 8.

Selling on rise would be the strategy this week,there will be profit-taking after the recent run-up in prices on safe haven buying,there will be adjustments,said Gnanasekar Thiagarajan,director,Commtrendz Research.

Gold may continue its correction to 18,100/18,000 rupees levels,selling could be done at 18,500,targeting 18,100/18,000 rupees,said Somnath Dey,in-charge metals and energy research with Religare Commodities.

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However,continued bargain-buying by jewellers could limit the downside,they added.

India physical gold volumes retreated from a pick-up witnessed on Friday as a nationwide strike hurt demand.

There were a few deals since morning as prices are still attractive,but we are not getting enough business since many branches are shut,said a dealer with a state-run bullion dealing bank in Mumbai.