MUMBAI (Reuters) - Gold futures in India are expected to fall from their two-month high hit on Tuesday, weighed down by speculations that the era of ultra-loose global monetary policy may end, along with demand concerns in the physical market.
Successive rounds of stimulus measures around the world have boosted gold prices to record highs in recent years by keeping up pressure on interest rates while stoking inflation fears.
At 9.53 p.m., the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was down 0.52 percent at 27,866 rupees per 10 gram, after hitting a high of 28,288 rupees earlier in the session, a level last seen on April 12.
"We expect a healthy correction in gold and silver," said Navneet Damani, associate vice-president, Motilal Oswal Commodities Pvt Ltd.
Selling is advised in gold at 28,200 rupees, targeting 27,0125/26,880 rupees, with a stop loss at 28,465 rupees, said Damani.
In a bid to curtail gold demand, India raised import duty to 8 percent after a ban on consignment imports by banks, state-run and premier trading houses. India's festival and wedding season has ended and will re-start in August.
Silver for July delivery was 1.34 percent lower at 43,570 rupees per kilogram.
Selling is advised below 43,500, for target towards 42,700-42,500 with stop loss above 44,200, said Damani.
(Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu)
