MUMBAI: Gold futures may extend gains for a second week helped by a weaker dollar overseas, which enhances its appeal as an alternative investment, but retreating local demand could limit the upside, analysts said. The most-active October contract on the Multi Commodity Exchange (MCX) was trading 0.17 percent higher at 18,228 rupees per 10 gram at 6:06 p.m., after hitting a high of 18,258 rupees earlier.
Buy on correction to 18,000 rupees, targeting 18,500/18,900, said Pranav Mer, senior analyst with Mangal Keshav Commodities. The contract had gained 1.4 percent in the previous week. "We may see a corrective upside in gold on weak dollar," said Vibhu Ratandhara, assistant vice-president with Bonanza Commodity Brokers.
Buying could be done at 18,025/18,050, targeting 18,250/18,275, maintaining stop loss at 17,975, said Ratandhara. The dollar index was trading 0.22 percent higher at 80.584. Gold and dollar often move in opposite directions as the two compete for funds globally.
India's gold buying eased after a two-week trot, as prices traded above a three-week high and well above the $1,200 an ounce-mark, with dealers expecting premiums to ease.
