Mumbai: India’s gold futures were up on Monday as crude oil bounced back from a seven-week low overseas, boosting the metal’s safe haven appeal, analysts said.
“The metal is likely to remain bullish, but fall shy of the psychological Rs13,000 per 10 grams mark,” said Somnath Dey, incharge, metals and energy research, at Religare Commodities Ltd.
Foreign gold gained strength as crude oil rebounded from a seven-week low in technical buying and short-covering. Gold generally tracks crude oil as the latter signals inflation, while the metal douses it.
Dey said August gold could stay within Rs12,680 and Rs12,800 during the day.
The open interest for August gold was at 8,830 lots, higher than 8,782 on Saturday. Volume in the previous session was at 1.378 kg.