Indian gold seen falling to 1-month low
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Indian gold futures are likely to fall over the fortnight, extending losses to their lowest since early November, as investors resort to year-end profit-taking, shaving off part of the double digit gains made in 2012 so far.
The actively traded gold contract for December delivery on the Multi Commodity Exchange (MCX) was 0.23 percent higher at 31,281 rupees per 10 grams. The contract has gained more than 14 percent since January, 2012.
Gold is likely to fall due to year-end profit-taking and absence of follow-through buying despite easing by the U.S. Federal Reserve, said Gnanasekar Thiagarajan, director of Commtrendz Research in Mumbai.
A new proposal for tax hikes on incomes over $1 million a year from U.S. Republican House Speaker John Boehner on Sunday was seen as a step forward, but it still remained some way from the position of President Barack Obama.
Selling is advised on rallies to 31,450-31,500, with a stop loss of 31,700, targeting 30,700, Thiagarajan said, referring to the target level last seen on Nov. 5.
Subdued buying for the wedding season is also likely to weigh on sentiment, analysts said.
The wedding season is underway in India and will continue until early January. Gold is an essential gift item at weddings in India , the world's largest buyer of the metal.
Silver futures are also likely to extend fall from their lowest level in two weeks following the yellow metal.
Silver contract for March delivery on the MCX was 0.32 percent higher at 61,542 rupees per kg, nearly flat from their lowest level since Dec. 5.
In MCX silver, selling is advised on rallies to 62,150-62,250 rupees, for a target of 60,700, he said.