MUMBAI (Reuters) - India gold futures fell on Monday, extending losses to a one-week low on an early strength in dollar overseas, dimming the yellow metal's appeal as an alternative investment, analysts said. The most-traded gold February contract was 0.69 percent lower at 17,463 rupees per 10 grams at 10:51 a.m., after touching 17,428 rupees, a level last seen on Nov. 30. The contract shed 3.3 percent in the last two sessions. The dollar trimmed gains early as investors pocketed profits after Friday's rally but strong U.S. jobs data lifted sentiment across Asian financial markets, encouraging investors to move into riskier assets. "The higher dollar would result in correction in gold prices," said Kunal Shah of Nirmal Bang Commodities. Selling is recommended at 17,580, with a target of 17,435 rupees, with a stop loss of 17,610, said Shah. Open interest for February gold on MCX was at 16,651 lots, down from 16,817 a day earlier. "Only if gold trades below 17,400, we could see further downside till 17,200," said Abhishek Chauhan, an analyst with Angel Commodities.

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