RTRS: India gold seen extending gains for 3rd week
(Reuters) - India gold futures may extend gains for a third week running helped by a weaker dollar overseas, which enhances the yellow metal's appeal as an alternative, safe-haven investment, analysts said.
The most-active October contract was trading 0.73 percent higher at 18,700 rupees per 10 grams at 6:26 p.m., after hitting a high of 18,732 rupees, the highest since July 1. The contract had gained 3.4 percent in the last two weeks.
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Prices are still below the contract high of 19,198 rupees struck on June 8.
"For this week prices likely to get support at every dip from Indian festival-season buying, weak dollar and weak U.S. and Japan economical data while some pressure can be expected from profit-booking and slower buying at higher level," said Vibhu Ratandhara, assistant vice-president with Bonanza Commodity Services.
The dollar index slipped 0.51 percent as the yen rose broadly, with talk of possible demand from Japanese exporters and investor fund repatriation also giving the yen a boost.
Dollar and gold move in opposite direction as the two compete for funds globally.
Indian gold demand is set to pick up for the busy festival season, starting with Raksha Bandhan on Aug. 24 and extending till Dhanteras in November, the single biggest gold-buying day.
Buying could be done at 18,600, targeting 18,850/18,900 rupees, maintaining a stop loss of below 18,500, said Pranav Mer, senior analyst with Mangal Keshav Commodities.
India may import 500-550 tonnes of gold in 2010, up from 480-490 tonnes from a year earlier, and prices are expected to remain firm, said Anjani Sinha, head of the Indian Bullion Market Association (IBMA).
