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Thursday October 8, 11:50 AM
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India gold futures extend gains for fifth day
MUMBAI (Reuters) - India gold futures extended gains for a fifth day on Thursday, tracing overseas gains, but a strong rupee capped the upside in the yellow metal, analysts said.
The most-traded December contract was 0.20 percent higher at 15,843 rupees per 10 grams at 11:21 a.m., after gaining 1.6 percent in the previous four sessions.
International spot gold, which guides the domestic market, topped $1,050 per ounce to mark a record high for the third session in a row on Thursday.
Gold may still see more upside and even witness fresh highs locally, they added.
"The primary bull trend continues to get stronger and this along with the topside breakout in charts is hinting at fresh highs," said Pradeep Unni, senior research analyst with Richcomm Global Sevices.
"The upside momentum will still persist in gold, resistance is seen at 15,900/16,000 rupees," said Harish Galipelli, head of reasearch with JRG Wealth Management in Kochi.
"MCX gold needs to close above the 16,000 mark for sustained gains, but stronger rupee and record high prices may restrict rapid rise," added Unni.
The Indian rupee hit a fresh one-year high, rallying for a fifth consecutive session, on the back of a wobbly dollar and surging capital flows into local shares. A strong rupee makes the dollar-quoted asset cheaper.
Domestic prices rallied to a seven-month high of 16,009 rupees last month, nearing their all-time high of 16,040 rupees, struck on Feb. 20.
Open interest for December gold on MCX was at 12,864 lots, up from 12,632 a day earlier. Volume on Wednesday was 41.16 kg.
(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)
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