Gold likely to rebound from 2-week lows

Indian gold futures are likely to rebound, after falling on Monday to their lowest levels in two weeks, on expectations of a weaker dollar post U.S. GDP data.

"There could be a correction initially and there could be a gradual pull back," said Subhrasom De, an analyst with Karvy Comtrade, adding that weak U.S. GDP data, which is due on Thursday, could help gold.

Gold and the dollar often move in opposite directions as the two compete for funds globally.

The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.10 percent higher at Rs 31,465 per 10 grams, recovering partially from the previous session's low of Rs 31,272, a level last seen on September 9.

Buying is advised in gold at Rs 31,550-Rs 31,600, with a target of Rs 32,000, and a stop loss below Rs 31,300, said De.

Silver futures are likely to rise following the yellow metal.

Silver for December delivery on the MCX was 0.38 percent higher at 62,650 rupees per kg.

Silver could trade in the range of Rs 61,300- Rs 63,700, said De.