MUMBAI: Gold futures snapped a nine-day losing streak on Monday morning helped by a weaker dollar overseas, enhancing the yellow metal's appeal as an alternative investment, analysts said.
The most-traded gold February contract was 0.58 per cent higher 17,063 rupees per 10 grams at 10:50 am, after losing 6.7 per cent in the previous nine sessions.
The euro rose on the dollar after Dubai said it had received $10 billion from Abu Dhabi to help it repay a bond maturing on Monday, as currency players were forced to cover short positions. The dollar index was 0.34 per cent lower at 10:57 am Analysts expect the downtrend to continue in gold and traders would also look at the Federal Reserve policy meeting for direction.
"There could be a bounce back from last weeks low's in gold, but the trend is still down," said Murukesh Kumar senior analyst, JRG Wealth Management.
Gold may trade in the range of 16,930-17,100 rupees, said Kumar. Open interest for February gold on MCX was at 16,812 lots, down from 16,881 a day earlier. "Gold may see some downside till 16,800 (rupees) after rallying to 17,125/17,130 today," said Gnanasekar Thiagarajan, director, Commtrendz Research.
