MUMBAI: India's gold futures were up on Thursday on speculative buying owing to a weaker dollar and the trend was likely to persist during the day, analysts said.
"It is purely a speculative and investment-driven rally," said an analyst at IL&FS Investsmart Commodities Ltd. "The economic data expected today is likely to be supportive for gold."
The US will release data on jobless claims and retail sales, among others, that could have a bearing on the dollar. Overseas spot gold inched up as the dollar tumbled amid doubts on the effectiveness of the US Federal Reserve's efforts to aid credit markets.
Crude oil steadied near a record high with investors flocking to commodities in hopes of better returns. Gold usually has an inverse relation with the dollar as the two compete for wealth, but it moves in tandem with crude oil as the latter causes inflation while gold beats it.
Another analyst at Anand Rathi Commodities said the April contract on the Multi Commodity Exchange of India Ltd was likely to stay firm and hover between 12,720 rupees per 10 grams and 12,850 rupees.
Open interest for April gold was at 9,702 lots, up from 9,336 on Wednesday. Volume of the previous day was at 42.79 kg.
"It is purely a speculative and investment-driven rally," said an analyst at IL&FS Investsmart Commodities Ltd. "The economic data expected today is likely to be supportive for gold."
The US will release data on jobless claims and retail sales, among others, that could have a bearing on the dollar. Overseas spot gold inched up as the dollar tumbled amid doubts on the effectiveness of the US Federal Reserve's efforts to aid credit markets.
Crude oil steadied near a record high with investors flocking to commodities in hopes of better returns. Gold usually has an inverse relation with the dollar as the two compete for wealth, but it moves in tandem with crude oil as the latter causes inflation while gold beats it.
Another analyst at Anand Rathi Commodities said the April contract on the Multi Commodity Exchange of India Ltd was likely to stay firm and hover between 12,720 rupees per 10 grams and 12,850 rupees.
Open interest for April gold was at 9,702 lots, up from 9,336 on Wednesday. Volume of the previous day was at 42.79 kg.
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