RPT-OUTLOOK-Mixed views on India gold on weak global cues, rupee

(Repeats story issued on Monday)

MUMBAI, Nov 17 (Reuters) - Indian analysts held mixed views on gold prices this week as weak global cues and falling oil prices are likely to be offset by domestic demand and a weak rupee.

"The trend looks bearish on falling crude oil and weak overseas markets," said Harish Galipelli, head of research, Karvy Comtrade Ltd.

Oil fell more than $1 to below $56 a barrel on Monday, close to its lowest in almost two years, after a meeting of the Group of 20 major economies ended with few concrete proposals on dealing with global recession. See [ID:nSYD352049]

Gold generally moves in tandem with crude oil as the latter signals inflation, while the metal negates it.

Buyers should not take any aggresive long positions at this moment, said Devarsh Vakil, head of research, Anagram Capital Ltd.

However, a weakness in the rupee and marriage demand are likely to support the market, said Kunal Shah, an analyst with Nirmal Bang Commodities Pvt Ltd.

The Indian rupee fell 0.7 percent on Monday on heavy demand for dollars from a large company and worries a stock market slide would accelerate foreign fund withdrawals.

India imports most of its gold. A weak rupee makes imports costlier and pushes up domestic prices.