India gold futures up on firm crude, seen aiming higher
MUMBAI, June 30 (Reuters) - India's gold futures were slightly higher on Monday on the Multi Commodity Exchange of India Ltd (MCX) as overseas markets rebounded from an early fall, and analysts said it could show more gains with the help of strong oil and weak dollar.
"Gold has given a technical breakout... the trend is on the upside," said an analyst at IL&FS Investsmart Commodities Ltd.
"Its fall earlier was due to profit taking."
Gold was near a one-month high struck on Friday as crude oil stayed firm on tensions between Israel and Iran over the latter's nuclear programme and a weaker dollar that drew more funds into oil.
Gold generally has an inverse relation with the dollar as the two compete for funds. But it generally follows crude oil as it signals inflation while the metal douses it.
The benchmark August gold is likely to trade within 12,650 rupees and 13,000 rupees per 10 grams, said K.N. Rahaman, deputy research head at Way 2 Wealth Securities Ltd.
Open interest for August gold was 8,619 lots, up from 8,579 on Saturday. Volume in the previous session was at 1.6 kg.
Silver futures on the MCX were also expected to follow gold and remain firm during the day, Rahaman added.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:41 a.m. <0#MAU:>: Continued...
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