India Gold Trade Steady, May Hit All-Time High: Analysts

India gold, which traded steady Monday, is likely to near the all-time high helped by safe haven buying, and silver is likely to follow suit, analysts said.

The most-active gold for February delivery on the Multi Commodity Exchange was 0.05 percent lower at 29,184 rupees per 10 grams. The contract had struck a record high of 29,516 rupees on November 15.

Eurozone solution can drive all asset prices higher. Crude rising higher could trigger inflationary concerns again, said Gnanasekar Thiagarajan, director with Commtrendz Research in Mumbai. We will remain neutral this week. Overall, it should move up with gold and base metals, but technical picture looks mixed, he added.

Later in the day, French President Nicholas Sarkozy and German Chancellor Angela Merkel will meet to align their positions on closer fiscal integration of the region, before a European Central Bank meeting and a European Union summit later in the week.

Lacklustre demand from the physical market could limit the upside in prices, analysts said. Wedding season is currently underway in India, the world's biggest consumer of gold.

At average levels we can go for a buy, said said Ramesh Chenchela, an analyst with Karvy Comtrade, adding buying could be done at 28,760-28,800 rupees for a target of 29,230/29,500 rupees, with a stop loss of 28,500 rupees.

The most-traded silver for February delivery on the MCX was 0.28 percent higher at 57,359 rupees per kg. Silver may trade in the range of 55,250-59,780, said Karvy's Chenchela.