MUMBAI: India gold futures may strike a fresh record in early trade on Wednesday helped by a weaker dollar, which enhances the yellow metal's
appeal as an alternative investment, analysts said.
The benchmark February gold on the Multi Commodity Exchange (MCX) closed 1.3 per cent higher at Rs 17,957 per 10 grams. The contract had struck a record high of Rs 18,082 per 10 grams last week.
February gold is likely to open at Rs 18,020/18,030 per 10 grams, said Abhishek Chauhan, an analyst with Angel Commodities. "The focus is on the currency movements, and gold is looking completely on the upside," said Chauhan.
"Gold's upside is seen till 18,200," said Tejas Seth, senior research analyst with SMC Global. The US dollar was on the defensive broadly, while the euro and higher-yielding currencies extended impressive gains as investor risk appetite showed little sign of waning ahead of the year end.
"If it breaches 18,100, further upside could be seen till 18,200/18,300," said Chauhan. US gold futures rose to a record high above $1,210 per ounce on Wednesday, marking an all-time high for the second straight day.
India's copper futures may open slightly higher on continued weakness in the dollar overseas and strong overnight data from the US, analysts said. The most-traded February contract on the Multi Commodity Exchange of India (MCX) ended one per cent higher at Rs 328.75 per kg.
February copper may open at Rs 329 rupees, said Aurobinda Prasad, head of research, Karvy Comtrade. "We expect further upside in copper today as dollar is weak and on higher equities," said Prasad.
Copper may be in the range of 325-333, said Murukesh kumar senior analyst, JRG Wealth Management. US pending home sales pointed to a ninth straight month of growth, and manufacturing sector rose for fourth consecutive month.
The January zinc contract closed 2.4 per cent higher at Rs 109.45 per kg, while lead for January delivery ended 3.8 per cent higher at Rs 112.65 per kg in the previous session.
