RTRS: India gold slightly higher propped up by weak dollar
MUMBAI, Dec 18 (Reuters) - India gold futures reversed early losses to trade slightly higher on Thursday, after it rose to its highest level in more than three weeks in the previous session on a weaker dollar, analysts said.
"Gold will find support from a weaker dollar and safe haven buying," Debjyoti Chatterjee, associate vice-president, MAPE Admisi Commodities.
The benchmark February gold MAUG9 on Wednesday witnessed its high in more than three weeks of 13,377 rupees before settling at 13,168 rupees per 10 grams.
However, a firmer rupee would keep the gains under check, analysts said. India imports most of its gold and pays for it in U.S. dollars, so the exchange rate plays an important role in determining local price.
The Indian rupee climbed towards a fresh one-month high on Thursday, following the dollar's weakness against some Asian currencies and a firmer stock market. See [ID:nBOM122333]
"Though the trend in gold is up, we expect it to ease to 12,700 level through the day," said Amrut Deshmukh, a senior technical analyst at Way 2 Wealth Securities.
March silver is expected to rally and trade in the 17,900-18,200 rupees range, Chatterjee added.
Open interest for Feb gold on MCX was at 15,501 lots, down from 15,650 a day earlier. Volume on Wednesday was 66.09 kgs.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:35 a.m. <0#MAU:>: Feb 13,172 +4
