Indian gold futures rose on Monday tracking a firm overseas market and rising crude oil prices, analysts said.
The trend is bullish due to firm crude oil, said Gnanasekar Thiagarajan, director, Commtrendz Research.
Overseas gold edged up towards $927 an ounce on Monday, continuing last week's rally as oil prices resumed their march upwards and the U.S. dollar steadied at near a one-month low.
Oil rose towards $133 a barrel on Monday, extending the previous session's gains on a supply outage at the Statfjord oilfield in the North Sea and a weak U.S. dollar.
High oil prices increase fears of inflation encouraging investors to buy the precious metal as a hedge.
However, there won't be much movement in the market due to holidays in U.S. and UK, said Shailendra Kumar, head of research, Sharekhan Commodities Pvt Ltd.
MCX June contract is expected to trade in the range of 12,720-12,800 rupees, Commtrendz's Thiagarajan said.
Open interest for June gold on MCX was at 7,092 lots, up from 7,049 the previous session. Volume on Saturday was 1.1 kg.
Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:22 a.m.:
Contract Current price Net change
June 12, 739 5
Aug 12 758 8
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