MUMBAI (Reuters) - Gold futures in India, the world's biggest buyer of the yellow metal, are likely to fall further, weighed by a strong dollar and as investors chase riskier assets like equities.
The dollar and gold often move in opposite directions as the two compete for funds globally.
Investors are waiting to see the impact of the U.S. spending cuts known as the "sequester", although the $85-billion cuts, a fraction of the federal government's total spending of $3.7 trillion, are unlikely to become a huge drag on the economy.
"We are still holding a downside view in gold and silver due to U.S. budget cuts. Money is generally flowing out of commodities," said Subhrasom De, an analyst with Karvy Comtrade in Hyderabad.
Local gold is down about 4 percent this year, pressured by perceptions that stocks and other higher-yielding assets may offer better return as global growth recovers.
At 1053 GMT, the actively traded gold for April delivery on the Multi Commodity Exchange (MCX) was 0.28 percent lower at 29,657 rupees per 10 grams.
More From This Section
Selling is advised at 29,800/29,830 rupees, for a target of 29,450, with a stop loss above 30,295 rupees, said De.
Silver for March delivery on the MCX was 0.07 percent lower at 53,830 rupees per kg.
Selling is advised in silver at 55,600 rupees, for a target of 53,600 rupees, with a stop loss above 56,400 rupees, De added.
(Reporting by Siddesh Mayenkar; Editing by Jijo Jacob)