India gold edges up on overseas markets, rupee

MUMBAI, July 3 (Reuters) - India gold futures edged up on Friday tracking gains in overseas markets and further supported by a weak rupee, making the dollar-quoted asset expensive, analysts said.

Analysts said gold contracts may witness thin volumes as U.S. markets are shut for the Independence Day holiday.

The most active August contract MAUQ9 was 0.11 percent higher at 14,500 rupees per 10 grams at 11:06 a.m..

Overseas gold, which guides the domestic market, rose and hovered above $930 per ounce, with investors keeping an eye on the dollar, which rose the previous day when bleak U.S. jobs data enhanced the dollar's safe-haven appeal and hurt bullion. See [ID:nT282389] The Indian rupee eased, pressured by the dollar's gains overseas. "The movement would be downwards in gold due to a strong dollar," said Harish Galipelli, head of research with Karvy Comtrade, adding however that volumes may remain low due to the U.S. holiday.

Gold may trade in the range of 14,380-14,550 (rupees), BG Manjunath Prasad, a technical analyst with Way 2 Wealth Securities, said.

Open interest for August gold on MCX was at 12,426 lots, up from 12,382 a day earlier. Volume on Thursday was 26.56 kg.

Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:06 a.m. <0#MAU:>:

Contract Current price Net change

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Aug 14,501 +17

Oct 14,508 +17

For a technical look at gold double click (www.reutersindia.net/gold.htm)

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)