MUMBAI: Gold futures were almost steady with a positive bias on Wednesday supported by a weak dollar overseas, which enhances the yellow metal's
appeal as an alternative asset, analysts said.
The most-traded October gold contract on the Multi Commodity Exchange was 0.15 per cent higher at Rs 15,566 per 10 grams at 11:17 am.
"The outlook is positive on the reversal in euro," said Gnanasekar Thiagarajan, director, Commtrendz Research.
"Buying is recommended at 15,560, with a stop loss of 15,530 and targeting 15,600/15,620 rupees," said Pranav Mer, an analyst with India Infoline.
The euro inched up 0.2 per cent to $1.4620 against the dollar, having climbed over 4 per cent so far in July-September.
Domestic gold has gained about 4 percent so far in July-September, when dollar's weakness overseas and strong technical momentum spurred buying in the yellow metal.
Gold also rallied to its seven-month high of 16,009 earlier this month, within the reach of its all-time high of Rs 16,040, struck on Feb 20.
"Considering the rupee fluctuation, we expect gold to face tough resistance at Rs 16,300 in the last quarter," said Mer.
Open interest for October gold on MCX was at 10,963 lots, down from 11,474 a day earlier. Volume on Tuesday was 28.15 kg.
