India gold futures down as crude falls, dollar rises

MUMBAI (Reuters) - India's gold futures were down on the Multi Commodity Exchange of India Ltd (MCX) on Monday as foreign markets dipped on the back of easing crude oil and a stronger dollar, analysts said.

"In both gold and silver a downward trend can be expected, though in the case of gold, the falls can be limited as people are holding on to it as a safer bet," said Harish Galipelli, head of research at Karvy Comtrade Ltd.

Foreign gold, that guides the local market, moved towards a two-week low hit last week as crude oil fell on demand fears and the dollar jumped to a 13-month high against the euro.

Gold generally has an inverse relation with the dollar as the two compete for funds. But the metal usually moves in tandem with crude oil as the latter signals inflation, which the metal negates.

December gold on the MCX was expected to trade within 12,700 rupees per 10 grams and 12,865 rupees, said Dharmesh Bhatia, senior technical analyst at Kotak Commodity Services Ltd.

Open interest for December gold was at 7,963 lots, up from 7,930 lots on Saturday. Volume in the previous session was at 1.794 kg.

December silver on the MCX was expected to trade within 18,550 rupees per kg and 19,098 rupees, Bhatia added.