Tuesday August 25, 11:40 AM

India gold futures steady on lower crude, weak rupee

MUMBAI (Reuters) - India gold futures were steady on on Tuesday, as pressure from the weakness in crude oil was offset by a depreciating rupee, analyts said.

The most-traded October contract was 0.25 percent lower at 14,960 rupees per 10 grams at 11:21 a.m., after hitting a low of 14,934 rupees in early deals.

Oil fell below $74 a barrel, down for the first time in six days on softer Asian shares as renewed concerns over the economic recovery emerged, after reaching a 10-month high a day earlier.

Crude oil and gold move in tandem as one drives inflation and the other is a hedge against rising prices.

The Indian rupee weakened on month-end dollar demand from importers and oil firms and weaker Asian stock markets, making the dollar-quoted yellow metal expensive.

"The overall trend is down due to technical patterns. Supports are placed at 14,883/14,790 rupees," said Krishna Reddy, an analyst with Way 2 Wealth Securities.

"Gold prices are not sustaining 15,000 (rupees) and may trade in between 14,900-15,020," said Pranav Mer, an analyst with India Infoline.

Open interest for October gold on MCX was at 14,31 lots, down from 14,521 a day earlier. Volume on Monday was 27 kg.

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