MUMBAI, Jan 5 (Reuters) - India gold futures extended gains for the fifth consecutive day in a row on Tuesday helped by a weaker dollar overseas, which enhances the yellow metal's appeal as an alternative investment, analysts said.
The most-active gold February contract MAUG0 on the Multi Commodity Exchange was 0.30 percent higher at 16,880 rupees per 10 grams at 10:49 a.m., after gaining 1.1 percent in the last four trading sessions.
"Further strength would be mainly because of declining dollar index," said Aurobinda Prasad, head of research, Karvy Comtrade, adding buying is recommended at 16,850, with a stop loss of 16,820 and targeting 16,930 rupees.
The dollar index .DXY was 0.23 percent lower at 77.348 at 10:49 a.m.
"We may see some fresh fund allocation in gold overseas, and in the domestic market it may test 17,000 rupees today," said Praveen Singh, an analyst with Sharekhan Commodities.
Open interest for Feb gold on MCX was at 16,438 lots, up from 16,718 a day earlier.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:49 a.m. <0#MAU:>:
Contract Current price Net change
Feb 16,881 +51
Apr 16,938 +49
For a technical look at gold double click (www.reutersindia.net/gold.htm)
(Reporting by Siddesh Mayenkar; Editing by Ramya Venugopal)
