Gold exchange traded funds (ETFs) have lost favour among investors as mutual fund managers pulled out close to Rs 500 crore from these products in the first two months of the fiscal, mainly on account poor return.
Gold edged up on Monday as Greece and its creditors failed to strike a deal to avert a debt default, but gains were capped as traders waited for a Federal Reserve policy meeting later this week for clues on the outlook for U.S. interest rates.
Gold rose 1 percent on Tuesday after disappointing U.S. data hit the dollar and dampened expectations that the Federal Reserve will hint at this week`s policy meeting at an interest rate hike in coming months.
Gold clung to sharp overnight gains on Tuesday, bolstered by a weaker dollar and short-covering on rising expectations the Federal Reserve will not hint at a June rate hike at its policy meeting this week.
Gold gave up some of its overnight gains on Wednesday as the US dollar firmed after earlier losses, with investors keeping their attention focused on the Greek debt crisis and its impact on the currency markets.
Gold firmed for the fourth straight session on Monday to its highest in more than two weeks, as the dollar extended losses and expectations rose that the Federal Reserve will hold off until at least September to raise interest rates.
Gold was steady but failed to rebound on Wednesday after falling more than 1 percent in the previous session as Greece`s plan to end a standoff with creditors lifted the appetite for risky assets such as equities.
Gold prices dropped 1.4 percent on Friday as European stock markets headed for their biggest weekly gain since mid-February on expectations for more central bank stimulus to lift the euro zone economy.