India gold may extend losses for 4th week

It will trade with a negative bias,gold will be supported at 18,070 rupees8230; even the European crisis is easing,said Krishna Reddy,senior analyst with Way 2 Wealth Securities.

Gold prices are still below the all-time high of 19,198 rupees struck on June 8.

The euro fell against the dollar,pulling away from a two-month high as concerns about the effectiveness of stress tests on European banks prompted investors to trim long positions in the single currency.

A strong dollar dims the yellow metal8217;s appeal as an alternative investment overseas.

Gold may witness major profit-taking as concerns in the European Union have abated. Selling could be seen at 18,475/18,500 rupees,targeting 18,200,maintaining a stop loss of 18,600,said Gnanasekar Thiagarajan,director with Commtrendz Research.

Retreating physical offtake after a pick-up witnessed last week could also weigh on the yellow metal,they said.

India gold buying retreated on Monday afternoon as global prices recovered and traders sought lower rates to stock for the second round of festivals starting August.