Reuters
Mumbai, Apr 18: India gold futures extended losses on Friday to trade just above the keenly watched Rs 14,000 level, pressured by higher equity markets and a strong dollar overseas, analysts said.
However, recovering demand from the world's largest consumer may keep the downside limited, they added. Festivals in India as well as the ongoing wedding season have kept buyers trickling into the market, traders said.
The benchmark gold June contract was 0.69% lower at Rs 14,042 per 10 grams at 11:33 am, after losing 1.6% in the previous three sessions.
"Risk appetite is returning... due to recovering equity markets," said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai "Strong dollar is also pressuring gold."
"Rs 13,875 would be the next important support level," he added.
Recovering equity markets signal abating economic worries and therefore reduce the appeal of the safe haven asset. The dollar's recent gain also hurts as the yellow metal is considered an alternative investment to the US currency.
"Charts certainly point out to extended weakness and repeated failures to break the tough resistance at 14,400 (rupees) have given bears an upper hand," said Pradeep Unni, senior research analyst with Richcomm Global Services.
Open interest for June gold on MCX was at 14,626 lots, up from 14,598 a day earlier. Volume on Thursday was 49.33 kg.