Gold prices in India are likely to open lower, when shops and establishments selling gold, open-up for operations.
Gold on the MCX was down nearly by Rs 445, and with the Indian currency stable, it would not be a surprise to see gold rates dip by almost Rs 400 per 10 grams. Gold for Feb delivery was trading lower by Rs 445 at Rs 48,860 per 10 grams.
Internationally too, the precious metal has come under some bit of selling pressure. Spot gold was down to $1,838.58 an ounce, while U.S. gold futures was down at $1,834 an ounce.
For the last few weeks gold has been steady largely supported by reports of a stimulus in the US, which has helped gold prices remain in a band.
While gold has tried to break from earlier levels, a firm dollar and benchmark 10-year Treasury yields hovering close to their highest level in nearly 10 months, has helped limit those gains.
In India, most investors and consumers are looking for a decline in the price of the precious metal to make meaningful purchases. With stocks already scaling lifetime highs, investors are increasingly looking at increasing their exposure in the precious metal. Any sharp dip in gold prices may lead to some support emerging at lower levels.
Most analysts see the possibility of gold remaining steady at these levels and climbing, should there be a bad news.