India gold futures edged lower on Monday morning pressured by a stronger rupee, but rising crude oil kept the downside limited, analysts said.
The most-traded February contract was 0.08 percent lower 17,697 rupees per 10 grams at 10:40 am It had struck a contract high of 18,082 rupees last week.
The rupee strengthened, pulling away from three-week lows hit on concerns about the Dubai debt crisis, as stronger Asian currencies and shares shares raised expectations of fund flows into the local market.
A strong rupee makes the dollar-denominated asset cheaper.
Oil prices rebounded toward USD 77 a barrel, aided by a weaker US dollar, but investors continued to eye developments in debt-laden Dubai with caution over their impact on the pace of the global economic recovery.
Strong crude enhances the yellow metal appeal as an inflationary hedge.
"We expect gold to trade lower unless there is any further clarity on Dubai debt crisis. Gold may trade in the range of 17,620-17,800," said Krishna Reddy, an analyst with Way 2 Wealth Securities.
Gold may trade in the range of 17,500-17,750, said Tejas Seth, senior analyst with SMC Global.
Open interest for February gold on MCX was at 13,815 lots, up from 13,700 a day earlier.
India gold futures edged lower on Monday morning pressured by a stronger rupee, but rising crude oil kept the downside limited, analysts said.
