MUMBAI: India gold futures edged higher on Wednesday helped by an early weakness in the rupee and investors awaited comments from the Federal Reserve for direction, analysts said.
The most-traded February contract on the Multi Commodity Exchange (MCX) was trading 0.07 percent higher at 17,053 rupees per 10 grams at 10:50 am, after hitting an intra-day high of 17,077 rupees. The rupee edged lower in early trade on the back of the dollar's gains against major units, but a Moody's outlook upgrade for the local currency rating limited a further fall.
"Market would be waiting for leads from the FOMC (Federal Open Market Commitee) meeting, if gold breaches 17,130 (rupees), only then further upside could be seen," said Murukesh Kumar, an analyst with JRG Wealth Management.
A weak rupee makes the dollar-quoted asset expensive. "Gold may be choppy today, mood will be set by the FOMC meeting in the evening... For the day, trading range is seen at 16,950-17,108 (rupees)," said Anand James, senior research analyst, Kochi-based Geojit Comtrade.
The Fed is finishing a two-day policy meeting later in the day and is expected to keep very low interest rates to help the economic recovery. Open interest for February gold on MCX was at 16,412 lots, down from 16,497 a day earlier.
