Investors eye gold ahead of twin meetings of US Fed and BoJ

KOLKATA: Indian investors are taking interest in gold ahead of the twin meetings of US Federal Reserve and Bank of Japan that is due this week. Gold price in the international market has shown some steadiness on Monday and Tuesday after a volatile movement last week which has sparked the renewed interest in gold.

Gold for the June contract on MCX opened at Rs 29287 per 10 gm, slightly higher than yesterday's closing of Rs 29262 per 10 gm. It touched a low of Rs 29070 per 10 gm during the morning session.

A weaker dollar and equities helped gold extend gains into Tuesday in the international market. Spot gold had edged up 0.1% to $1,238.83 per troy ounce by 2.50 am GMT, after gaining 0.5% in the previous session. Hareesh V, senior analyst, Geofin Comtrade said "The metal continues to be influenced to a large extent by dollar movements,"

"The US dollar fell versus the yen as traders took profits from the greenback’s recent rally against the Japanese currency. The expectation of a dovish Fed also hurt the dollar. Moreover, rupee has gained against dollar," bullion traders said.

Analysts said that gold is now on the bullish side which may enthuse investors to take position in the market. "Price may move up again," Hareesh V added.