RTRS: India gold extends gains as weak dollar supports
MUMBAI, Jan 25 (Reuters) - India's gold futures continued to rise from 2-½ months lows on Monday morning, buoyed by a weaker dollar, which enhances the yellow metal's appeal as an alternative investment overseas, analysts said.
The most-traded February gold contract MAUG0 on the Multi Commodity Exchange was 0.17 percent higher at 16,515 rupees per 10 grams at 11:12 a.m. The contract had struck a 2-½ month low of 16,351 rupees on Friday.
"Some recovery is expected in gold after last week's lows essentially driven by dollar weakness, gold is looking postive towards 16,580/16,670 rupees," said Anand James, senior analyst with Geojit Comtrade.
The U.S. dollar dipped on Monday while the euro and high-yielding currencies advanced, lifted by reports that Federal Reserve Chairman Ben Bernanke was moving closer towards confirmation for a second term.
Open interest for Feb gold on MCX was at 14,004 lots, down from 14,022 a day earlier.
Gold may trade in the range of 16,350-16,650, said Tejas Seth, senior analyst with SMC Global.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:13 a.m. <0#MAU:>:
Contract Current price Net change
Feb 16,515 +28
Apr 16,580 +29
For a technical look at gold double click (www.reutersindia.net/gold.htm)
(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)
