RTRS: India gold futures fall on stronger dollar overseas
MUMBAI (Reuters) - India's gold futures were down on Wednesday, in step with foreign markets where gains in the dollar mainly against euro, deterred investors, analysts said.
"Euro weakness (against the dollar) and the plunging crude oil is putting a downward pressure on gold (globally)," said an analyst at Karvy Comtrade Ltd.
Gold has an inverse relation with the dollar as the two compete for funds, crude oil which drives inflation, shares a direct relation as the metal is used as an inflation hedge.
Foreign gold that guides the local market fell 1 percent, extending the previous day's 3 percent decline when a rally in the dollar prompted long liquidation.
The benchmark December gold on the Multi Commodity Exchange of India Ltd (MCX) is expected to find support at 12,000 rupees per 10 grams and resistance at 12,400 rupees, said Subodh Gupta, analyst at Anand Rathi Commodities.
December silver is likely to find support at 17,000 rupees per kg and resistance at 17,800 rupees, Gupta added.
