Gold prices gained 0.27 per cent on Thursday as investors continued to await next week's interest rate decision by the Federal Reserve for further indications on the path of tightening the US central bank will embark on for the remainder of 2016. Traders expect gold to remain in a holding pattern for the next several days ahead of the Federal Open Market Committee's (FOMC) interest rate decision on April 27. In each of its first two meetings this year, the FOMC has held its benchmark Federal Funds Rate steady at a targeted range between 0.25 and 0.50 per cent. At the MCX, Gold futures for June 2016 contract is trading at Rs 29,439 per 10 gram, up by 0.27 per cent after opening at Rs 29,255, against the previous closing price of Rs 29,317. It touched the intra-day high of Rs 29,462.
However, a stronger dollar reduced the appeal of gold as an alternative asset. Stronger greenback makes the bullion expensive for those holding other currencies, thus reducing demand.
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