India's gold futures on Tuesday traded within striking distance of their all-time high on strong overseas cues, but a stronger rupee kept a lid on gains, analysts said. Overseas gold was little changed at just above $900 an ounce as traders took a break from a three-day rally to the highest level in over three months, pondering the fate of the dollar and outlook for risk aversion. See [ID:nSYD163356] Gold on MCX is doing some catch-up as Indian markets were closed on Monday, said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai. "We expect gold to correct to 14,025 (rupees) because of rupee appreciation," said Thiagarajan, adding 14,025 would be good level to buy. Gold futures on the continuous charts MAUc1 traded 121 rupees higher at 14,193 rupees per 10 grams at 11:10 a.m. The contract had struck its all-time high of 14,320 rupees on Oct. 10 as investors sought refuge to a safe-haven asset amid a global financial turmoil. Buying is recommended at 14,025 rupees, with a target of 14,260 and with a stop loss of 13,985 rupees, Commtrendz's Thiagarajan added. A new positive trend has emerged in gold after it breached 13,800 rupees (on Jan. 23), said Amrut Deshmukh, a technical analyst at Way 2 Wealth Securities, adding the rally may continue till 14,700-15,000 rupees. Open interest for Feb gold on MCX was at 14,966 lots, down from 15,339 a day earlier. Volume on Saturday was 5.6 kgs.

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