MUMBAI, Oct 20 (Reuters) - India gold futures edged higher on Tuesday, supported by a weak dollar overseas, enhancing the gold's appeal as an alternative investment, analysts said.
The most-traded December contract MAUZ9 was 0.40 percent higher at 15,916 rupees per 10 grams at 10:56 a.m.
The dollar fell to fresh lows for the year as a cocktail of central bank comments fed into dollar-bearish sentiment, although options-related trade blocked the euro's rise to $1.50. [USD/]
"It would go up further as dollar is weak, further chart-based buying is also expected after a brief corrective decline," said Harish Galipelli, head of research, Karvy Comtrade in Kochi.
The contract is down about 1 percent from its record high of 16,048 rupees, struck on Sept. 13.
"It could test its immediate level of 16,000 rupees and may even go up to 16,150 rupees," said Galipelli.
"A weak dollar would help gold, it might test 16,000 rupees today," said Kunal Shah, an analyst with Nirmal Bang Commodities.
Open interest for December gold on MCX was at 12,552 lots, down from 12,736 a day earlier. Volume on Monday was 13.82 kg.
