Mumbai: India gold futures steadied near their previous day’s record highs on Wednesday morning as pressure from a slightly higher rupee was offset by inflationary concerns stoked by rising crude oil, analysts said.

The most-traded December contract was 0.04% lower at Rs17,015 per 10 grams at 11:02am, after hitting a record high of Rs17,040 in late session on Tuesday.

Gold may face some resistance at Rs17,120, Abhishek Chauhan, technical analyst with Angel Commodities said.

The Indian rupee nudged higher as traders unwound long dollar positions, with the US unit easing against majors. A strong rupee makes the dollar-quoted asset cheaper.

Oil rose towards $80 a barrel, supported by an industry report that showed crude stocks in the U.S. fell steeply last week, but limited by US economic data that painted a picture of a slow recovery.

Rising crude oil enhances gold’s appeal as an inflation hedge.

Analysts said the outlook is still positive for the yellow metal.

“People are ready to buy at any dip. Gold may distinctly move on the upside till 17,185 later today,” said Gnanasekar Thiagarajan, director, Commtrendz Research.