India gold futures advance on overseas mkt cues
MUMBAI (Reuters) - India's gold futures were higher on Thursday in tune with foreign markets where the metal gained from speculative buying amid the turmoil in U.S. markets, but analysts said profit-booking may weigh.
"We are looking at a little downside in gold," said Devarsh Vakil, manager, research at Anagram Capital Ltd. "It has risen too fast and there is a possibility of profit booking."
But continued worries over the U.S. financial system may attract safe-haven buying in the metal, said another analyst.
Foreign gold that guides the local market was supported by safe-haven buying amid uncertainties about when the U.S. might approve a $700 billion bailout plan for troubled companies. October gold on the Multi Commodity Exchange of India Ltd (MCX) was expected to trade within 13,050 rupees per 10 grams and 13,400 rupees, said K.N. Rahaman, deputy research head at Way 2 Wealth Securities Ltd.
Open interest for October gold was at 8,059 lots, higher than 7,860 on Wednesday. Volume a day ago was at 57.96 kg.
December silver was expected to range between 20,850 rupees per kg and 21,300 rupees on the MCX, Rahaman added.
December silver traded at 20,950 rupees.
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