India gold futures reverse losses on dollar

India gold futures reverse losses on dollar

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MUMBAI (Reuters) - India gold futures reversed early losses on Monday supported by weak dollar overseas, analysts said.
The dollar fell, hitting its lowest in seven weeks on the euro, as investors emboldened by slowing U.S. job losses extended diversification into other currencies.
Gold and dollar often move in opposite direction.The most traded June contract was 0.29 percent higher at 14,548 rupees per 10 grams at 11:05 a.m. The contract had gained 1.5 percent last week."We forsee some appreciation in prices primarily due to bargain hunting," said Debjyoti Chatterjee, associate vice-president with ADMISI Commodity Services.
Gold may rally and trade in the range of 14,460-14,700 rupees, Chatterjee added.Gold may rally further if it manages to breach 14,750 rupees, said Vikas Vaid, assistant vice-president with Asit C. Mehta Commodity Services.