Gold prices likely to dip on profit booking

Gold, considered a safe haven for investors, may see a slight correction during the week in the futures market to hover around Rs 15,400 per 10 gram level on the back of profit booking, according to analysts.

"The precious metal may take a correction as the precious metal is overbought at the moment and the prices trade in the range of Rs 15,400 per 10 gram level as people are booking profit taking advantage of the high price," brokerage firm SMC Global Vice President Rajesh Jain said.

Gold touched a record Rs 15,750 per 10 grams on February 19 in Delhi spot market, after scaling an intra-day high of Rs 15,800 per 10 grams.

Jain further said that in the international market gold, which breached the 1,000 dollar an ounce mark yesterday on New York Mercantile Exchange (NYMEX), may trade at $950 an ounce level.

Gold August contract closed at Rs 15,875 per 10 grams, down by 0.42 per cent on Multi Commodity Exchange (MCX).

He said gold remains bullish in long term and if the equity market does not pick up the prices will continue to go northward.

Echoing his view, Bonanza Head Commodity Research Tarun Satsangi said movement in gold was stagnant from 1998-2001. "Prices started moving upwards only after 2001, so people are taking advantage of the current price trend."