RTRS: India gold futures edge lower on strong rupee
MUMBAI (Reuters) - India gold futures edged lower on Monday weighed by a strong rupee, which makes the dollar-quoted asset cheaper, analysts said.
The most-traded December gold contract on the Multi Commodity Exchange was 0.28 percent lower at 15,560 rupees per 10 grams at 11:09 a.m., after hitting a low of 15,549 in early deals.
The Indian rupee climbed to fresh two-month highs tracking the dollar's weakness versus major units but an early drop in the domestic sharemarket capped a further rise.
"This negative movement is primarily due to a firm rupee," said Anand James, senior research analyst with Geojit Comtrade.
"There could be a dip initially, but gold may strengthen later and as soon as it breaches 15,600, further buying could happen," said James.
Domestic gold had touched a seven-month high of 16,009 rupees in September, nearing the all-time high of 16,040 rupees on Feb. 20.
Gold may trade in the range of 15,550-15,700 rupees on Monday, said Abhishek Chauhan, technical analyst, Angel Commodities.
Open interest for December gold on MCX was at 11,777 lots, up from 11,593 a day earlier. Volume on Monday was 2.5 kg.
(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)
