India gold futures up on weak dollar, firm crude

MUMBAI Fri May 16, 2008 11:33am IST

MUMBAI May 16 (Reuters) - India's gold futures were up on Friday extending the previous day's robust gains amid a weaker dollar and firm crude oil.

The trend for the day looked firm, analysts said.

"Continued buying can be seen in the initial session," said Harish Galipelli, head of research at Karvy Comtrade Ltd.

The dollar was weaker against other major international currencies as economic data raised concerns about growth in the U.S. while crude oil rebounded on thinning global supplies.

Gold prices generally have an inverse relation with the dollar as the two compete for investments. But it moves in tandem with oil as the latter signals inflation while gold is a good hedge against it.

The benchmark June gold on the Multi Commodity Exchange of India Ltd (MCX) is seen trading within 11,900 rupees to 12,200 rupees per 10 grams, said Rajini Panicker, head of research at MF Global Commodities India Ltd.

Open interest for June gold was at 8,703 lots, down from 8,863 on Thursday. Volume on the previous day was at 48.38 kg.

Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:29 a.m. <0#MAU:>:

Contract Current price Net change

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June 12,073 27

August 12,117 37

For a technical look at international spot gold, double click www.reutersindia.net/gold.htm)

(Reporting by Ruchira Singh; editing by Sunil Nair)