India's gold futures recovered in early trade on Friday on a weak rupee, after having struck a new all-time high in the previous session, analysts said.
However, they added, gold might witness slight profit-taking later in the session after gaining more than 6 percent in the last three days. "We might see a slight profit-taking to 15,450 levels today," said Devarsh Vakil, manager-research with Anagram Capital in Ahmedabad.
"High volatility would be seen in gold prices in the short-term," said Subodh Gupta, an analyst with Anand Rathi Commodities.
The benchmark gold April contract MAUJ9 was 0.56 percent higher at 15,542 rupees per 10 grams at 11:35 a.m., after having struck a new record-high of 15,706 rupees in the previous session. The contract closed 0.7 percent lower at 15,455 rupees on Thursday.
A weaker rupee makes the dollar-quoted imported gold expensive. The Indian rupee dropped on Friday, weighed down by losses in the share market and a stronger dollar overseas, but volume was thin following a one-day strike by central bank employees. See [ID:nBOM187876]
"Gold may remain choppy for the day," said Somnath Dey, in-charge of metals and energy research at Religare Commodities in Delhi.
Selling is recommended at 15,560 rupees with a stop loss of 15,660 rupees and with a target of 15,300, added Religare's Dey.
Open interest for April gold on MCX was at 20,626 lots, up from 19,649 a day earlier. Volume on Thursday was 64.89 kg.
