RTRS: India gold futures little changed, seen choppy
MUMBAI, Oct 21 (Reuters) - India's gold futures were little changed on Tuesday tracking foreign markets, but analysts said a stronger dollar overseas and firmer crude oil may keep the metal volatile.
"Gold is choppy... before it falls, it is going to have a bounce back," said K.N. Rahaman, deputy research head at Way 2 Wealth Securities Ltd.
Foreign markets rose over half a percent lifted by crude oil, but a stronger dollar, boosted by U.S. Federal Reserve Chairman Ben Bernanke's testimony on the economy, suggests that the metal's rise may be capped.
Gold generally has an inverse relation with the dollar as the two compete for funds. But the metal usually tracks crude oil as the latter signals inflation that gold negates.
The benchmark December gold on the Multi Commodity Exchange of India Ltd (MCX) is expected to find support at 12,620 rupees per 10 grams and resistance at 12,840 rupees, said an analyst at Motilal Oswal Commodities Broker Pvt Ltd.
December silver on the MCX is likely to trade between 17,250 rupees per kg and 17,890 rupees, the Motilal Oswal analyst added.
