Mumbai: India gold futures were higher on Friday, tracking gains in overseas gold, analysts said.
International gold prices inched above $940 to a near one-week high, as firmer oil prices supported bullion’s appeal as a potential hedge against oil-led inflation.
“Gold prices will be on the higher side....it has regained appeal in the international market as a hedge against inflation,” said an analyst with a Hyderabad-based brokerage.
Analysts, however, said a firm rupee may limit rise of the domestic futures.
The Indian rupee nudged higher on Friday in tandem with a rise in shares and supported by the dollar’s weakness against major currencies.
A firm rupee makes gold imports cheaper.