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Monday October 12, 11:30 AM
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India gold extends gains as rupee supports
MUMBAI (Reuters) - India gold futures extended gains for a second day on Monday, helped by a weak rupee, which makes the dollar-quoted asset expensive, analysts said.
The most-traded December gold contract on the Multi Commodity Exchange (MCX) was 0.31 percent higher at 15,886 rupees per 10 grams at 10:57 a.m., after gaining 0.13 percent in the previous session.
The Indian rupee dropped for a second straight session as the dollar's rise against major units depressed sentiment, while traders were closely eyeing the sharemarket for cues on fund flows.
"There would be sideways movement in gold. Range expected is 15,720-15,870 rupees," said Kunal Shah, an analyst with Nirmal Bang Commodities.
"Profit-taking cannot be ruled out after last week's rise."
The contract had gained 1.5 percent in the previous week.
Open interest for December gold on MCX was at 12,843 lots, up from 12,668 a day earlier. Volume on Saturday was 1.06 kg.
(Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)
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