India gold futures edged higher on Wednesday on the back of a weak dollar overseas and rising crude oil, spurring inflationary concerns, analysts said.
The most-traded December gold contract was 0.22 percent higher at 15,803 rupees per 10 grams at 11:02 a.m., after gaining 0.7 percent in the previous session.
The dollar was on the defensive, while higher-yielding currencies such as the Australian dollar held near their 2009 highs, buoyed by investors' search for returns. A weak dollar enhances the yellow metal's appeal as an alternative investment.
Oil prices rose for the third day and topped $71 a barrel, as an industry report showing a small drawdown in U.S. crude stockpiles last week fed optimism for a recovery in energy demand.
International spot gold , which guides the domestic market, witnessed an all-time high of $1,043.45 an ounce in the previous session. But movements in domestic gold were subdued, weighed by rupee at its 4-month peaks on Tuesday.
A strong rupee makes the dollar-quoted yellow metal cheaper domestically.
However, analysts said gold might witness some profit-taking before a leg up.
"There could be profit-taking after yesterday's rise, but the overall trend is still bullish on faltering U.S. dollar. Range seen is 15,640-15,835 rupees," said Kunal Shah, an analyst with Nirmal Bang Commodities.
The momentum is still positive and gold may trade in the range of 15,700-15,900 rupees, said Harish Galipelli, head of research with JRG Wealth Management.
Open interest for December gold on MCX was at 13,017 lots, up from 12,998 a day earlier. Volume on Tuesday was 49.02 kg.
How do you think this might affect the Gold Bullion market?
The most-traded December gold contract was 0.22 percent higher at 15,803 rupees per 10 grams at 11:02 a.m., after gaining 0.7 percent in the previous session.
The dollar was on the defensive, while higher-yielding currencies such as the Australian dollar held near their 2009 highs, buoyed by investors' search for returns. A weak dollar enhances the yellow metal's appeal as an alternative investment.
Oil prices rose for the third day and topped $71 a barrel, as an industry report showing a small drawdown in U.S. crude stockpiles last week fed optimism for a recovery in energy demand.
International spot gold , which guides the domestic market, witnessed an all-time high of $1,043.45 an ounce in the previous session. But movements in domestic gold were subdued, weighed by rupee at its 4-month peaks on Tuesday.
A strong rupee makes the dollar-quoted yellow metal cheaper domestically.
However, analysts said gold might witness some profit-taking before a leg up.
"There could be profit-taking after yesterday's rise, but the overall trend is still bullish on faltering U.S. dollar. Range seen is 15,640-15,835 rupees," said Kunal Shah, an analyst with Nirmal Bang Commodities.
The momentum is still positive and gold may trade in the range of 15,700-15,900 rupees, said Harish Galipelli, head of research with JRG Wealth Management.
Open interest for December gold on MCX was at 13,017 lots, up from 12,998 a day earlier. Volume on Tuesday was 49.02 kg.
How do you think this might affect the Gold Bullion market?