Mumbai: Gold futures were up on Monday in line with the international market supported by firm crude oil, output drops in South Africa and prospects of US rate cuts.
Analysts said the trend was bullish for the day.
“Gold is primarily taking its cues from crude oil today,” said Debjyoti Chatterjee, associate vice president at MAPE ADMISI Commodity Research.
Crude oil was firm on geopolitical concerns as Iran warned western countries that they would be the ones to suffer if they pass new UN sanctions over its nuclear programme.
Gold was also supported on continued expectations of a rate cut in the US and supply problems in South Africa mines.
Another analyst, Amar Singh, head of commodity research at Angel Commodities Broking Pvt Ltd, said the April contract on the Multi Commodity Exchange of India Ltd was likely to face support at Rs11,950 per 10 grams and resistance at Rs12,200.
But the bias was on the upside, Singh added.
Open interest for April gold on the MCX was at 12,631 lots, up slightly from 12,608 on Saturday. Volume in the previous session was at 1.34 kg.