India Gold Seen Rising above 29,000 Rupees

Indian gold futures, which struck a two-month high last week, could extend gains to top 29,000 rupees, a level keenly watched by the market, due to higher crude oil prices and weakness in the dollar versus the euro, analysts said.

The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was flat on Tuesday at 28,737 rupees per 10 grams.

Buy gold on dips to 28,600 rupees, with a stop loss of 28,450 for a target of 29,000 rupees, said Gnanasekar Thiagarajan, a director with Commtrendz Research.

The dollar and gold often move in opposite direction as the two compete for funds globally.

The euro rose broadly, moving within sight of a near three-month high against the U.S. dollar ahead of an injection of cheap cash by the European Central Bank that could boost risk appetite and the common currency in the near term, which could help the yellow metal.

Silver, which was steady on Tuesday, could gain this week.

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Buy silver on dip to 58,500, with a target of 59,500, Thiagarajan said.

Silver for March delivery on the MCX was flat at 58,703 rupees per kg.