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India gold, silver seen rising this week
February 21, 2012 / 1:57 PM / in 6 years

India gold, silver seen rising this week

MUMBAI (Reuters) - India gold futures are likely to rise this week on expectations of global dollar weakness and higher crude oil prices, analysts said.

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008. REUTERS/Parth Sanyal/Files

The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.42 percent higher at 28,275 rupees per 10 grams on Tuesday.

Buying is advised in gold on dips to 28,050 rupees, for a target of 28,500 rupees, said Gnanasekar Thiagarajan, director with Commtrendz Research.

“Higher crude oil prices and a weaker dollar are supportive for the precious metals complex,” said Thiagarajan.

Dollar and gold often move in opposite direction as the two compete for funds as alternative assets.

The euro held onto gains on Tuesday due to relief over Greece’s securing of a rescue deal to avoid a chaotic default, but sceptical investors were looking to sell into a bounce on doubts whether it makes the country’s debt burden any more manageable.

Silver could also extend gains this week following the yellow metal.

“Buy silver on dips to 55,900 rupees for a target of 57,500 rupees,” said Thiagarajan.

Silver for March delivery on the MCX on the MCX was 0.43 percent higher at 56,560 rupees per kg.

Reporting by Siddesh Mayenkar; Editing by Subhadip Sircar

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