Gold may ease from record highs

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Mumbai: India's gold futures may ease in early Wednesday trade on profit-taking after hitting record highs in the previous session, analysts said.

The benchmark December gold on the Multi Commodity Exchange (MCX) closed 3.1 per cent higher at 16,618 rupees per 10 grams, after hitting a record high of 16,639 rupees.

December gold is likely to open at 16,550 rupees per 10 grams, said Abhishek Chauhan, an analyst with Angel Commodities.

"Since gold has made a new high, traders would try to book profits. Any dip would find support at 16,500 rupees," 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 16,750 (rupees), while support is at 16,450," said Chauhan.

Thiagarajan saw resistance at 16,750/16,800 rupees levels.

India's copper futures may open flat as traders are expected to turn their attention on the Federal Reserve ahead of the interest rates decision and the comments on the state of the economy, analysts said.

The most-traded November contract on the Multi Commodity Exchange of India (MCX) ended 0.7 per cent higher at 308.40 rupees per kg in the previous session.

November copper may open at 309 rupees, said Aurobinda Prasad, deputy manager-research, Karvy Comtrade.

The US Federal Reserve meeting concludes later on Wednesday.

"Market will focus on Fed for fresh leads, range seen is 307-313 rupees," said Prasad.