MUMBAI: India's gold futures are likely to extend last week's gains on Monday morning to hit a fresh peak and may rise above Rs 28,000, bolstered by a rally overseas and a weak Indian rupee, analysts said.
International spot gold surged 1.4 percent to score an all-time high for a third consecutive session on Monday, as nervous investors fled to the safety of the bullion amid fears of another U.S. recession and the euro zone's debt crisis.
The most-traded gold for October delivery on the Multi Commodity Exchange (MCX) closed 1.47 percent higher at 27,954 rupees per 10 grams in the previous session. It hit a record peak of 27,989 rupees on Saturday.
The rupee plays an important role in determining the landed cost of the yellow metal and copper, which are quoted in dollars.
Indian rupee weakened in early trades on Monday to levels not seen in nearly nine months due to bunched-up dollar outflows following a local forex market holiday on Friday.
COPPER
Copper futures on MCX are likely to edge higher chasing an upside in the London market and as the rupee weakens, analysts said.
London copper inched up on Monday as investors focused on potential supply disruptions in Chile and a general positive demand outlook, but worries about a global economic slowdown continued to weigh on sentiment.
The most-active copper for August delivery last closed 0.14 percent lower at 402.9 rupees per kg.
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