Mon Sep 7, 2009 12:06pm IST
MUMBAI, Sept 7 (Reuters) - India gold futures were slightly lower on Monday tracking overseas cues, but analysts said worries about the global economy limited the downside.
International gold futures dipped a touch but still hovered just below $1,000 on Monday in buying linked to a weaker dollar and fears about inflation. See [ID: nT36558]
Gold is considered as a safe hedge investment against economic uncertainties for investors who are averse to risk.
The precious metal rallied last week amid prospects for falls in stock markets and worries about inflation, with central banks pumping money into their economies to help fight the global recession.
The US unemployment rate jumped to a 26-year high of 9.7 percent.
"Gold prices would be in range tracking US dollar...We expect gold to trade in range of 15,640-15,780 level for the day," said Kapil Gandhi of STCI 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.The dollar and the yen were subdued in early trade on Monday
http://in.reuters.com/article/domesticNews/idINBOM19549620090907?pageNumber=1&virtualBrandChannel=0&sp=true
http://economictimes.indiatimes.com/Market-News/Gold-futures-tad-lower-on-global-cues/articleshow/4981137.cms
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