India gold futures up on firm oil, seen rangebound

MUMBAI, July 4 (Reuters) - India's gold futures were higher on Friday on the Multi Commodity Exchange of India Ltd (MCX) on firm crude oil prices but the U.S. Independence day holiday meant prices could stick to a range amid low trading, analysts said. "It could move sideways, but crude oil's gains are still solid, so gold continues to be bullish," said T. Gnanasekar, director at Commtrendz Research.

International gold, the major guide for Indian markets, was higher as more investors bought the metal as a hedge against inflation with crude oil near a record high.

Heightened tension between Israel and OPEC's second-biggest producer Iran has put oil prices on the boil over the last two weeks, helping crude smash records five times in the past seven sessions.

Gold generally moves in tandem with crude oil as the latter stokes inflation but the metal negates it.

The benchmark August gold on the MCX was seen trading within 13,030 rupees and 13,140 rupees per 10 grams, said an analyst at Motilal Oswal Commodities Broker Pvt Ltd.

Open interest for August gold was at 8,995 lots, up from 8,984 on Thursday. Volume on the previous day was at 49.25 kg.

Silver futures were also seen tracking gold and firm copper, though its gains were seen capped owing to the long weekend.

Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd at 10:30 a.m. <0#MAU:>:

Contract Current price Net change