MUMBAI (Commodity Online): Gold futures in the domestic exchange are seen dwindling in the early moves on Monday due to the monetary measures taken by Reserve Bank of India and the continued rally of US dollar.

MCX Gold futures are flat with the April futures trading down Rs 2 at Rs 16504 per 10 grams. The traders may sell it on rallies around Rs 16540-50 levels with target of Rs 16470 and stop loss of Rs 16600.

Gold futures on COMEX are trading marginally higher at $ 1108.5 per ounce. The counter slipped to as low as $ 1103.5 today. Gold seems to be bearish in the near term with the international gold futures falling several times from the $1140-45 band. The break of $1100 may take it to $1070-50 levels in the near term.

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The Reserve Bank of India increased the repo rate, the rate at which it lends to banks, to 5.00 percent and the reverse repo rate, the rate which it absorbs funds from the system, to 3.50 percent with immediate effect.

Gold is trading almost flat at $1,107/oz levels in Asian hours. The dollar index looks marginally higher which can pressurize Gold prices for the day.

There are no major economic data scheduled today and hence, equity markets may extend some cues to bullion markets.

Asian equities are trading mixed to lower. There are some speculations that more central banks will follow India in raising interest rates which may curb the demand for precious metals. Gold is expected to trade sideways to lower for the day. MCX gold futures may open flat.

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