MUMBAI (Commodity Online): Gold futures registered modest gains Tuesday due to firm global sentiments driven by weakness in US dollar ahead of monetary policy meet.

MCX gold futures surged above Rs 16600 per 10 grams. The commodity can be bought on dips with target of Rs 16670 and stop loss of Rs 16550

COMEX Gold April futures contract jumped to as high as $ 1113.3 per ounce. The day traders may buy it on dips around $ 1110 with target of $ 1117 levels and stop loss of $1108.

The U.S. dollar fell to the lower 90-yen level as investors were cautious about buying the U.S. currency ahead of a policy meeting of the U.S. Federal Reserve. It approached the 1.3700 mark against the single currency, down over 0.2%.

Gold may rise for the second day as gold's safe haven demand is sought by investors amid doubts lingering over any financial assistance to Greece. Gold is trading $4 up at $1,109/oz in Asia.

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Today's reports may also show that both housing starts and building permits in the US declined and thus may put some pressure on the dollar. US import index also fell in February and thus reduces the possibility of any interest rate hike.

FOMC rate announcement, most likely to remain unchanged at 0.25 percent, is also scheduled in late hours. Consumer prices in the euro zone rose 0.3 percent in February following a decline in the month before. ZEW Survey for economic sentiments in the euro zone and Germany is expected to have fallen for March month.

Markets may see heavy volatility on the wake of a number of data releases today. Data expectations suggest some downfall in the dollar which may Lead bullion prices to advance. Domestic Gold futures are expected to open on higher note in sync with firm gold prices on Comex.

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