Gold prices soften a day after gaining ground

MUMBAI: Gold traded about 0.5% down on MCX at Rs 27,267 per 10 gm in early noon trades on January 7, taking cues from the international rate on the US bourse Comex, where it was down by $6.10 an ounce at $1,213 after posting gains on the previous day.

The yellow metal got a small boost as concerns over Greece breaking out of the eurozone spooked global stock markets at a time when oil prices have plunged to a five-year low.

According to analyst Naveen Mathur, who heads the commodities desk at Angel Broking, an upside in gold in dollar terms is likely to be capped by the strength displayed by the US dollar and a potential stimulus plan by the European Central Bank later this month, which could weigh down the euro.

In rupee terms, gold will get costlier for consumers if the dollar strengthens.

Mathur predicted that gold would trade in Rs 26,000-28,000 per 10 gm range in the near to medium term.