Gold futures ease, but seen aiming for new highs

MUMBAI (Reuters) - India's gold futures opened down on Thursday as foreign markets took a breather from the previous day's records, but analysts said it could aim for fresh highs owing to the the weak outlook for the U.S. economy.

"Gold may go down a bit and then come up again," said an analyst at IL&FS Investsmart Commodities Ltd.

"We are recommending a buy because there could be more rate cuts in the U.S."

Federal Reserve Chairman Ben Bernanke on Wednesday suggested that U.S. was ready for more rate cuts to give the economy a boost.

Overseas gold has gained around 16 percent this year on investor buying driven by record high crude oil prices and the prospect of more interest rate cuts, which has raised the metal's appeal as an alternative investment.

Overseas gold was slightly lower than the previous day, but still very much in sight of its record $964.70 an ounce reached the previous day.

A technical analyst Aurobinda Prasad at Karvy Comtrade Ltd said the April gold contract on the Multi Commodity Exchange of India Ltd could aim for 12,350 rupees per 10 grams if it manages to stay above its support of 12,170 rupees.

April gold on MCX touched its all-time high of 12,291 rupees on Wednesday.

Open interest for April gold was at 11,319 lots, up from the previous day's 11,277. Volume on Wednesday was at 53.81 kg.

(Reporting by Ruchira Singh)