MUMBAI: India gold may hit a fresh record on Thursday on persistent weakness in the dollar overseas, which enhances the yellow metal's appeal as investment, analysts said.
Hopes of central banks buying the yellow metal would continue to aid sentiment, they added. The benchmark February gold on the Multi Commodity Exchange (MCX) closed 1.3 per cent higher at Rs 18,187 per 10 grams, after hitting a record high of Rs 18,240.
February gold is likely to open at Rs 18,250 per 10 grams, said Aurobinda Prasad, head of research, Karvy Comtrade.
The dollar fell on Thursday after Bank of America said it would repay $45 billion of taxpayer bailout funds, boosting investor confidence and trimming safety bids in those currencies.
"The trend is still up on dollar weakness and hedge fund buying overseas. Gold may see an upside till Rs 18,350," said Prasad.
India's purchase of about half the International Monetary Fund's planned sales of 403.3 tonnes of gold has reinforced views that gold has established itself as an investment asset as well as an alternative currency.
"Rs 18,500 rupees could act as a major resistance for the day," said Abhishek Chauhan, an analyst with Angel Commodities.
Meanwhile, international spot gold hit record highs over $1,220 an ounce on Thursday.
India's copper futures may open slightly higher tracing a weaker dollar and upbeat sentiment boosted by overseas data, analysts said.
The most-traded February contract on the Multi Commodity Exchange of India (MCX) ended 1.2 per cent higher at Rs 332.60 per kg. February copper may open at Rs 333.50, said Krishna Reddy, an analyst, Way 2 wealth Securities.
"The weakness of dollar is still there, which would be a supportive factor, copper may breach 335 levels later," said Prasad.
Copper may be in the range of Rs 328-337 rupees, said Murukesh Kumar, senior analyst, JRG Wealth Management. China's economy is expected to grow about 8.5 per cent this year, as it steadily recovers, a government think-thank said.
The US labour market improved in November, with private sector job losses declining for the eighth straight month and employers planning fewer layoffs.
The January zinc contract closed 2.4 per cent at Rs 112.05 per kg, while lead for January delivery ended 1.5 per cent higher at Rs 114.40 per kg in the previous session.
