India's gold futures are expected to tread lower this week on an appreciating rupee, which makes the dollar-quoted asset cheaper, analysts said.
"The moves (in gold) would still be rupee dependent," said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai.
The most active June contract MAUM9 was 2.62 percent lower at 14,360 rupees per 10 grams at 4:47 p.m., after hitting a low of 14,338 rupees in early deals.
The contract had gained 1.7 percent the previous week.
"It would have negative bias, with crucial support pegged at 14,248 rupees," added Thiagarajan.
The Indian rupee strengthened past 48 per dollar for the first time in nearly five months after the ruling coalition won a clear election victory and the stock market surged 17.2 percent. See [ID:nBMA002925]
The Indian rupee is expected to trade stronger, with equities likely to see the momentum going. Foreign buying of local equities helps bring in dollar inflows, which indirectly pushes the rupee higher.
U.S. economic data on Friday offered some evidence that the recession's worst phase could be over, with April consumer price unchanged and industrial output declining at a slower pace than in March. [ID:nN15177430]
Investors would now await the release of U.S. National Association of Home Builders' May housing market index, housing starts due on Tuesday and jobless claims on Thursday for direction on the health of the economy.
