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Gold eases from record high on profit-booking
Last Updated: 2009-11-04 11:44:29
Gold futures eased on Wednesday as investors took profits after hitting record highs in the last session, analysts said.
The most-traded gold December contract on the Multi Commodity Exchange was 0.32 per cent lower at Rs 16,565 per 10 grams at 10:50 a.m., after hitting an all-time high of Rs 16,639 in late Tuesday trade.
"Since gold has made a new high, traders would try to book profits. Any dip would find support at Rs 16,500," said Gnanasekar Thiagarajan, director, Commtrendz Research.
However, analysts said gold may rebound later in the session on bullion's growing status as a destination for diversifying official reserves.
"There could be profit-taking initially, but the bias is still on the upside. Resistance is seen at Rs 16,750, while support is at 16,450," said Abhishek Chauhan, an analyst with Angel Commodities.
Thiagarajan saw resistance at Rs 16,750/16,800 levels.
Investors would also look to the US Federal Reserve meeting for direction in the precious metals complex. The meeting concludes late on Wednesday.
Open interest for December gold on MCX was at 17,377 lots, down from 17,705 a day earlier. Volume on Tuesday was 56.15 kg.
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