MUMBAI, Oct 31 (Reuters) - India's gold futures fell on Friday as crude oil weakened on recession fears and improved sentiment aided gains in the dollar and stocks, and signs were the sentiment may stay weak during the day, analysts said. "A lot of steps have been taken to improve liquidity in the markets that have helped stocks to some extent, so people are selling gold," said K.N. Rahaman, deputy research head at Way 2 Wealth Securities Ltd. Foreign gold, that guides the local market, was on course for its biggest monthly decline since 1983 with crude oil down and a rebound in the dollar. Gold generally has an inverse relation with the dollar as the two compete for funds. But the metal usually tracks crude oil as the latter signals inflation, which gold negates. The benchmark December gold on the Multi Commodity Exchange of India Ltd (MCX) was expected to range within 11,600 rupees per 10 grams and 11,900 rupees, said Subodh Gupta, analyst at Anand Rathi Commodities. December silver on MCX was expected to trade within 16,100 rupees per kg and 16,900 rupees, Rahaman said.

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