India gold futures up, seen in range amid opposite pulls

Enlarge Photo A customer wears a one-carat gold bangle during an exhibition in Jammu April 13, 2008....

Thu, May 8 11:39 AM

MUMBAI (Reuters) - India's gold futures were up on Thursday though foreign markets were steady, as the rupee weakened against the dollar boosting the import-driven gold.

Analysts said the metal may move in a range during the day with higher crude oil and a weak rupee propping it up, but a stronger dollar overseas was seen capping its gains, analysts said.

"Gold may be mildly bearish," said Kishore Narne, vice president - commodities at Anand Rathi Commodities. "It would have fallen if it did not have support from crude."

Crude oil prices, which usually takes gold in tow, remained near an all-time high, raising gold's appeal as a hedge against inflation.

On the other hand, a stronger dollar on waning worries about the credit market crisis, capped gold's rise.

Gold usually has an inverse relation with the dollar as the two compete for investment.

The benchmark June gold on the Multi Commodity Exchange of India Ltd (MCX) was seen finding support at 11,564 rupees and 11,485 rupees per 10 grams, said T. Gnanasekar, director at Commtrendz Research.

June gold may face resistance at 11,685 rupees and 11,745 rupees, Gnanasekar added.

Open interest for June gold was at 7,681 lots, up from 7,448 on Wednesday. Volume the previous day was at 27.09 kg.

Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:26 a.m. :

Contract Current price Net change

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June 11,650 22

August 11,701 17

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