MUMBAI: Gold futures traded slightly higher on Monday aided by rising crude oil spurring inflationary concerns, but a strong rupee back home
kept the gains in check, analysts said.
The most-active August contract was 0.25 per cent higher at Rs 14,800 per 10 grams at 10:46 am.
Oil rose above $64 a barrel, extending last session's 2.5 percent gains, bolstered by a rally in Asian stocks and fall in the dollar on hopes of a global economic recovery.
Gold is considered as a safe hedge against inflation. The Indian rupee rose in anticipation of fresh flows into the domestic sharemarket and underpinned by the dollar's weakness against major units overseas.
A strong rupee makes the dollar-quoted asset cheaper. "Gold may move up further on rising crude oil prices. The upside is seen till Rs 14,880," said Kunal Shah, assistant vice-president with Nirmal Bang Commodities.
Gold may be in a range of Rs 14,700-15,100, said Krishna Reddy, an analyst with Way 2 Wealth Securities.
Open interest for August gold on MCX was at 12,898 lots, up from 12,827 a day earlier. Volume on Saturday was 1.32 kg.
