ndia gold futures opened higher on Monday tracking foreign markets, where the yellow metal gained due to a weak dollar and firm crude, but a strong rupee may cap gains, analysts said.
"The precious metals space is supported by the strong overseas leads but a strong rupee might cap the gains in gold and silver," said Harish Galipelli, head of research, Karvy Comtrade Ltd.
India imports most of its gold and pays for it in U.S. dollars and so the exchange rate plays an important role in determining local prices.
The rupee edged higher on Monday as a strong opening in the local stock market raised expectations of renewed capital inflows, with steps by the central bank to boost market liquidity also helping.
December gold is likely to trade in the range of 11,467- 11,770 rupees, said Pradeep Unni, senior research analyst, Richcomm Global Services DMCC.
December silver may be confined to 16,728 and 17,392 rupees, Unni added.
Open interest for December gold on MCX was at 8,912 lots, up from 8,842 a day earlier. Volume on Saturday was 1.81 kg.
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