India gold futures track weak crude, more falls seen

Enlarge Photo A customer is seen wearing a one-carat gold bangle during an exhibition in Jammu in...

Thu, May 15 11:32 AM

MUMBAI (Reuters) - India's gold futures fell on Thursday tracking a lower crude oil and a stronger dollar overseas which could bring more falls in the day, analysts said.

"Crude oil can be expected to continue to correct (and) that will ease off pressure on inflation and gold will thus give up more gains," said K. N. Rahaman, deputy research head at Way 2 Wealth Securities Ltd.

Crude oil eased on rising U.S. stocks, while the dollar strengthened on tame consumer inflation data the previous day.

Gold generally moves in tandem with crude as the latter signals inflation, while gold is a good hedge against it. It generally has an inverse relationship with the dollar as the two compete for investments.

June gold on the Multi Commodity Exchange of India (MCX) is seen trading within 11,650 rupees and 11,880 rupees per 10 grams, said an analyst from Anand Rathi Commodities.

Open interest for June gold was at 7,488 lots, up from 7,392 on Wednesday. Volume on the previous day was at 32.76 kg.

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

Contract Current price Net change

===============================================

June 11,814 -4

August 11,864 -7

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