India's gold futures edged lower on Friday as rupee gained making the dollar-quoted yellow metal cheaper, analysts said.
Gold may move in a very narrow range of 12,945-13,100 rupees for the day, said Gnanasekar Thiagarajan, director at Comtrendz Risk Management.
Some bullish bias would prevail in gold for next week on the back of a weaker dollar, said Thiagarajan, adding gold may test the resistance of 13,200-13,250 by next week.
Overseas gold was mostly steady on Friday, holding near $845 an ounce amid views that the dollar would remain under pressure given the grim outlook of the U.S. economy, but activity was slow due to the holiday season.
The benchmark February gold last traded lower by 58 rupees at 13,016 rupees per 10 grams after it gained by more than 2.5 percent for the last four trading sessions.
The rupee edged higher on Friday on expectations the local stock market may open firm, but gains may be pared following the dollar's gains against some currencies such as the yen.
Open interest for Feb gold on MCX was at 14,709 lots, down from 14,823 recorded on Wednesday. Volume on Wednesday was 37.5 kgs.
