India gold may hit fresh highs

A woman holds gold bangles at a jewellery shop in Kolkata in this October 14, 2009 file photo.

MUMBAI (Reuters) - India gold futures may hit a new record in early trade on Friday supported by a weaker rupee, making the dollar-quoted asset expensive, analysts said.

The benchmark December gold on the Multi Commodity Exchange (MCX) closed 1.6 percent higher at 17,998 rupees per 10 grams, after hitting a record high of 18,047 rupees.

The contract has risen by 7 percent since last week.

December gold is likely to open at 18,025 rupees per 10 grams, said Gnanasekar Thiagarajan, director, Commtrendz Research.

The Indian rupee fell weighed down by weak Asian shares following Dubai's debt problems.

Gold may target 18,100/18,120 later today, said Commtrendz's Thiagarajan.

Analysts maintain a bullish bias on the yellow metal on recent weakness in dollar and the central bank's intention to diversify into the yellow metal.

"We still have a bullish view on gold, range expected is 17,900-18,200 rupees," said Aurobinda Prasad, head of research, Karvy Comtrade.

COPPER:

India's copper futures may open slightly higher tracking a weaker rupee, analysts said.

The most-traded November contract on the Multi Commodity Exchange of India (MCX) ended 1.5 percent lower at 318.00 rupees per kg.

November copper may open at 319 rupees, said Kunal Shah of Nirmal Bang Commodities.

"It may get supported in early part of the session by a weaker rupee, but the strategy is to sell on rise. Support is placed at 314 rupees," said Shah.

November zinc contract closed 0.8 percent lower at 104.25 rupees per kg, while lead for November delivery ended 1 percent lower at 108.70 rupees per kg in the previous session.

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