RTRS: India gold seen higher on weak dollar, firm crude
MUMBAI, Nov 10 (Reuters) - India gold prices are expected to trade higher this week on a weak dollar and support from firm crude oil, with a higher rupee is seen capping the upside, analysts said.
"With dollar losing some of it steam and oil refusing to slide below $60 mark on committed suport from OPEC, gold might get positive boost in the coming sessions," said Pradeep Unni, senior research analyst at Richcomm Global Services DMCC.
As the market turns positive, investor optimism may get rejuvenated and they would be tempted to invest into commodities rather than stocks, Unni added.
Gold rose 2 percent in Europe on Monday, lifted by gains across commodities after China announced a $600 billion economic stimulus package, and by weakness in the dollar against the euro. See [Id:nLA207483]
The only factor which may limit the upside for gold is rupee appreciation, said Harish Galipelli, head of research, Karvy Comtrade Ltd.
Most of India's gold is imported and paid for in dollars.
The Indian rupee strengthened on Monday as solid gains in the domestic share market renewed hopes for fresh capital inflows, but dollar demand from importers and oil firms capped gains. See [ID:nBOM241479]
The following are weekly recommendations for the December contract on the Multi Commodity Exchange of India Ltd. <0#MAU:> in rupees per 10 grams:
Brokerage Recommendation Stop Loss Target ============================================================ Richcomm Global Buy at 11,600 11,551 11,951-12,135
Religare Buy at 11,700 11,528 Above 12,000
Kotak Commodity Buy at 11,600 11,450 12,200
* At 6:46 p.m., the December contract on the MCX was trading at 11,713 per 10 grams, up 167 rupees. (Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)
