New Delhi: It's profit-booking time for investors in gold on Thursday after a sharp rally before and immediately after the interest rate cut in the US.
The spot and futures prices of the yellow metal were down on Thursday in the domestic market and analysts see further correction, saying gold was actually overbought over the past few days.
Gold prices dropped below Rs 9,400 per 10-gram level, after touching a high of Rs 9,450 the previous day. Most of the investors who had build up their position in last few days have started selling in the market, analysts said.
The US Federal Reserve's decision to hike rate and its prior expectations spurred heavy buying in gold on speculations that the move would put pressure on the dollar, thus making gold cheaper in non-US currencies.
"Investors have overbought in the last few days. The gold market is likely to see a slight correction at Rs 9,280 level," Karvy Comtrade analyst Harish G told PTI.
The October contract at MCX was trading at Rs 9,378 lower by Rs 18 compared to yesterday's closing at Rs 9,396. At NCDEX, it was hovering around Rs 9,378 level.
However, investors can see some support at Rs 9,366 level and can sell on pullback around Rs 9,415-20 levels, experts said.
The spot prices at Ahmedabad was quoted near Rs 9,381 and in Mumbai at Rs 9,390.
However, the gold prices were still on an upward move in the global market and were trading near $727 an ounce, a new record high in more than 27 years.
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