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Monday August 3, 12:10 PM
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India gold futures up on dollar, demand hopes
MUMBAI (Reuters) - India gold futures edged higher on Monday, supported by a weak dollar overseas along with hopes of local physical demand, analysts said.
The most-traded October contract was 0.08 percent higher at 14,833 rupees per kg at 11:20 a.m., after hitting a high of 14,865 rupees in early deals.
The dollar fell broadly and hit its lowest point this year against a basket of currencies after higher oil prices, steady global stock markets and U.S. GDP data boosted investments in riskier assets.
India's gold demand may pick up from August as consumers flush with cash and pent-up demand are seen boosting sales, potentially salvaging an almost 50 percent sales drop this year, a World Gold Council (WGC) official said.
"Gold October futures is still inside the congestion area and would struggle to move past the 14,900-15,000 (rupees) barrier, but once past 15,300, (the rise) should be swift," said Anand James, senior research analyst, Geojit Comtrade.
"The outlook is sideways to up for the day due to a weak dollar. Resistance is placed at 14,875 rupees," said Kunal Shah, assistant vice-president with Nirmal Bang Commodities.
Gold may be in the range of 14,720-14,875 rupees on Monday, added Shah.
Open interest for October gold on MCX was at 12,998 lots, up from 12,954 a day earlier. Volume on Saturday was 1.62 kg.
