India gold may make fresh record

India gold futures may strike another record high on Wednesday morning on a weaker dollar overseas and safe-haven buying due to inflationary expectations, analysts said.



The benchmark December gold on the Multi Commodity Exchange (MCX) closed 0.1 percent lower at 17,530 rupees per 10 grams. It had struck a record high of 17,624 on Nov. 23.



December gold is likely to open at 17,600 rupees per 10 grams, said Abhishek Chauhan, an analyst with Angel Commodities.



"Gold is still looking on the higher side on a weaker dollar, major resistance would be seen at 17,700 rupees," said Chauhan.



The dollar fell to its lowest in seven weeks against the yen on Wednesday after Japanese exporters sold dollars in early trade and the greenback slipped against other majors, dealers said.



A weak dollar enhances gold's appeal as an alternative investment.



"The bull trend will continue in gold on expectations of heating up of the U.S. economy, which may stoke inflationary concerns," said Kunal Shah of Nirmal Bang Commodities.



Buying could be initiated at 17,550 rupees, with a stop loss of 17,490 a target of 17,670 rupees, said Shah.

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