Gold edges higher to Rs 15,916 per 10 gms

The dollar fell to fresh lows for the year as a cocktail of central bank comments fed into dollar-bearish sentiment,although options-related trade blocked the euro’s rise to $1.50.

“It would go up further as dollar is weak,further chart-based buying is also expected after a brief corrective decline,” said Harish Galipelli,head of research,Karvy Comtrade in Kochi.

The contract is down about 1 per cent from its record high of Rs 16,048,struck on Sept. 13.

“It could test its immediate level of Rs 16,000 and may even go up to Rs 16,150,” said Galipelli.

“A weak dollar would help gold,it might test Rs 16,000 today,” said Kunal Shah,an analyst with Nirmal Bang Commodities.

Open interest for December gold on MCX was at 12,552 lots,down from 12,736 a day earlier. Volume on Monday was 13.82 kg.