India gold futures are expected to tread higher this week on expectations of a weak dollar after the Federal Reserve's plan to buy bonds, analysts said. "As the Fed keeps printing more paper currency, there would be a gradual erosion in the inherent value of U.S. dollar," said Pradeep Unni, a senior research analyst with Richcomm Global Services in Dubai. Gold traditionally moves in the opposite direction to the dollar as it is often used as a currency hedge, while a weaker dollar makes gold cheaper and more attractive for holders of other currencies. The dollar continued to sag on Monday as risk appetite improved on a U.S. plan to remove toxic assets from bank balance sheets after details of the scheme were revealed. See [ID:nLN205674] The Federal Reserve said last week that it will buy up to $300 billion worth of long-dated U.S. government debt. The benchmark April gold contract MAUJ9 was 0.43 percent lower at 15,435 rupees per 10 grams at 4:23 p.m. It had hit an intra-day low of 15,405 rupees earlier in the day. "In the medium term, the uptrend is still on and has the steam to spike gold to 15,900," said Unni. Supports are pegged at 14,800-14,500-14,085 and resistances are seen at 15,672-15,966-16,400, Unni added. "We continue to remain bullish in gold supported by a weak dollar," said Subodh Gupta, an analyst with Anand Rathi Commodities in Mumbai. The upside would be capped till 15,700-15,750 rupees, said Kunal Shah, an analyst with Nirmal Bang Commodities.

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