MUMBAI: India's gold futures were down on Monday due to a rising rupee, but commodity brokerages said they expected the volumes to remain thin due to holidays in US and Japan.
"The correction is largely due to a strong rupee," said Harish Galipelli, head of research, Karvy Comtrade Ltd.
The December contract would correct a bit towards Rs 9,470-9,480 and from there the market might take a momentum again, he said.
The Indian rupee rose on Monday as investors bought it in anticipation of more capital inflows.
The market could remain cautious ahead of US Federal Reserve minutes that could give clues on interest rates, analysts said.
The Federal Open Market Committee on Tuesday will issue the minutes of its September 18 meeting, at which it slashed the fed funds rate by a half percentage point to 4.75 per cent.
"I don't think something unusual will come out of it...but in case if they signal for a rate cut in coming days, that will be bullish for gold," said Galipelli.
Last Friday's jobs report has reduced the chance of another US interest rate cut this month, but not eradicated it.
"Thin volumes and cautious trade is expected for the session due to holidays in US and Japan," said Debjyoti Chatterjee of Mape Admisi Commodity Research.
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