MUMBAI: Gold futures edged higher on Tuesday helped by a weaker dollar overseas, which enhances the yellow metal's appeal as an alternative investment, analysts said.
The most-traded February gold contract on the Multi Commodity Exchange was trading 0.20 per cent higher at 16,868 rupees per 10 grams at 10:28 a.m.
The U.S. dollar drifted lower on Tuesday as equity markets stabilised and worries over Greece's fiscal woes eased just a little, favouring riskier trades in commodities and related currencies.
"Currently a weaker dollar is helping gold, there is still more room left (in gold) on the upside," said Debjyoti Chatterjee of ADMISI Commodities.
"Gold may be restricted in between 16,790-17,000 rupees today," said Chatterjee.
Open interest for February gold on MCX was at 15,268 lots, down from 15,417 a day earlier.
Gold may trade in the range of 16,750-16,950 rupees, said Tejas Seth, senior analyst with SMC Global.
