Mumbai: India gold futures traded steady on Tuesday as pressure from a strong rupee was offset by rising crude-oil, analysts said.
The most-active August contract was 0.04% lower at Rs14,590 per 10 grams at 11:51am.
The Indian rupee gained following two successive sessions of falls, on hopes foreigners would buy local shares in line with rising Asian stock markets.
Oil reversed the previous session’s losses and rose above $60 a barrel, thanks to improved sentiment amid a stock market rally, but lingering fears of the deep and long recession capped oil’s gains.
Gold is considered as a safe hedge against inflation, spurred by rising crude oil prices. “It would continue to trade in a range as long as the rupee volatility continues. Resistance is placed at 14,670 (rupees),” said Gnanasekar Thiagarajan, director, Commtrendz Research.
Gold may be in the range of Rs14,550-14,680, said Aurobinda Prasad, deputy manager-research, Karvy Comtrade.
Open interest for August gold on MCX was at 12,858 lots, up from 12,707 a day earlier. Volume on Monday was 28.34 kg.