Wed Sep 9, 2009 11:06am IST
MUMBAI (Reuters) - India gold futures were higher on Wednesday taking cues from overseas gold, which stayed above $1,000 an ounce for the second consecutive session, analysts said.
International gold prices rose on Wednesday, hovering just above $1,000 per ounce, but below the highs marked the previous day, as investors sold the dollar to buy riskier assets such as stocks and commodities.
The precious metal often moves in the opposite direction to the dollar, as it is seen as an alternative to holding the U.S. currency.
"U.S. Inflationary concern will also support the gold prices as the yellow metal is used as a hedge against the rising inflation," said Tarun Satsangi, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Indian gold futures are not delivery-based commodities and mirror international trends.
"In today's session, on higher side note, we think it shall move in the range of 15,640 -15,940 level for the day," said Kapil Gandhi of STCI Commodities.
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