Indian gold futures seen extending gains

MUMBAI (Reuters) - Indian gold futures are likely to extend gains past their highest level in more than two weeks, on expectations that the U.S. Federal Reserve would continue with its bullion-boosting monetary stimulus programme.

Disappointing U.S. jobs data released last week reduced the chance the Fed would alter its current $85 billion monthly purchases of mortgage-backed securities and treasuries known as qualitative easing in a bid to boost economic growth.

"Payroll numbers support view the FED will continue bond-buying programme, so positive for gold and silver," said Gnanasekar Thiagarajan, a director at Commtrendz Research.

The actively traded gold for June delivery was 131 rupees lower at 29,637 rupees per 10 gram on the Multi Commodity Exchange at 1259 GMT, after hitting a high of 29,816 rupees on Saturday, near a level last seen on March 21.

Buying is advised on dips to 29,500 rupees, with a stop loss of 29,350, targeting 29,800 rupees, said Thiagarajan.

Traders would also look at the movement in the rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver for May delivery on the MCX was 0.68 percent lower at 51,220 rupees per kilogram.

Buying is advised on dips to 51,000 rupees, with a stop loss of 50,700, targeting 52,500 rupees, said Thiagarajan. (Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu)