India gold futures rise on firm oil, weak rupee

MUMBAI, May 27 (Reuters) - Indian gold futures rose on Tuesday on firm crude oil prices and a weak rupee, analysts said.

"Fundamentals are still bullish. Higher crude oil and falling rupee are supporting the market," said Harish Galipelli, head of research, Karvy Comtrade Ltd.

Oil was little changed at around $133 a barrel on Tuesday after news of another attack on Nigerian oil facilities refocused concerns on immediate supplies.

High oil prices increase fears of inflation, encouraging investors to buy the precious metal as a hedge.

The partially convertible Indian rupee weakened on Tuesday as oil refiners stepped up dollar buying to meet their month-end import payments.

Most of India's gold is imported and a weak rupee pushes prices of the metal higher.

In macro-economic data, traders would be closely watching U.S. consumer confidence report, new home sales data for further cues, said Debjyoti Chatterjee, associate vice-president of MAPE Admisi Commodity Research.

The June contract on MCX is expected to trade in the range of 12,690-12,950 rupees, he said.

Open interest for June gold on MCX was at 7,067 lots, up from 6,977 the previous session. Volume on Monday was 7.8 kg.