(Reuters) - India gold futures are likely to extend last week's gains helped by a weaker dollar overseas, which increases appeal of the yellow metal as an alternative investment, analysts said.
At 4:04 p.m., the most-traded gold for December delivery on the Multi Commodity Exchange (MCX) last traded 0.24 percent higher at 28,954 rupees per 10 grams. The contract had struck an all-time high of 29,123 rupees last week.
"We are expecting gold to remain bullish this week as euro is expected to remain at the higher side," Subhrasom De, an analyst with Karvy Comtrade. Buying could be done at 28,700/28,550 rupees for a target of 29,400/29,550 rupees.
The dollar and gold always move in the opposite direction as the two compete for funds overseas.
The euro slipped against the dollar on Monday with nerves ahead of an Italian bond auction undermining initial optimism about the prospect of crisis-fighting reforms under new governments in Italy and Greece.
On Sunday, Italy's president appointed former European Commissioner Mario Monti to head a new government charged with implementing urgent reforms to end a crisis that has endangered the whole euro zone.
Slack physical demand could keep the upside in prices limited. Traders awaited fall in prices to book the yellow metal for the wedding season, which will last till December in India, the world's biggest buyer of bullion.
Silver futures are also likely to advance following record yellow metal.
Silver for December delivery on the MCX was almost flat at 57,673 rupees per kg.
Buy above 58,500 rupees, for a target of 60,500 rupees, said De.
