Gold futures down on stronger rupee

The benchmark December contract may be confined to 11,500 and 11,730 per 10 grams, Narne added.

The Indian rupee rose to a one-month high on Wednesday helped by dollar inflows from a large corporate, but pared gains as the local equity market turned negative after a strong opening.

The rupee value against the dollar determines the landed cost of the precious metal, most of which is imported and paid for in US currency.

Foreign gold, that guides the local market, slipped more than 1 per centas the dollar rose further against other currencies after Barack Obama won the US presidential elections.

Gold has an inverse relation with the dollar as the two compete for funds.

Open interest for December gold on MCX was at 8,372 lots, down from 8,412 a day earlier. Volume on Tuesday was 52.9 kg.