MUMBAI (Reuters) - India's gold futures may reverse the previous week's losses this week on expectations of weakness in the dollar, which enhances the yellow metal's appeal as an alternative investment in the overseas market, analysts said.
The most-active December gold contract on the Multi Commodity Exchange (MCX) was trading 0.15 percent higher at 19,241 rupees per 10 gram at 5:40 p.m., a little lower than the all-time high of 19,368 rupees struck in late September.
The contract had shed 0.4 percent in the previous week.
The dollar has slipped and gold has risen to a series of record highs after a string of lacklustre U.S. data raised concerns that U.S. authorities would have to take action to boost sluggish growth, undermining the unit.
"We are looking to buy on dips to 19,100, stop loss of 18,950 with a target of 19,350," said Gnanasekar Thiagarajan, director with Mumbai-based Commtrendz Research.
Gold and dollar often move in opposite directions as the two compete for funds globally.
Tejas Seth, associate vice-president with SMC Global, expects gold to trade in the range of 19,000-19,400 rupees this week.
Continuing physical demand from India, the world's largest consumer, could also aid sentiment, they added.
India is in the middle of the festival season, with Dussera in October and Dhanteras in November, when jewellers register the highest sales every year. Weddings also take place during the festive season.
This has prompted MMTC Ltd., country's second-largest gold importer, to hike December quarter imports by 37 percent to 55-60 tonnes.
