MUMBAI, Sept 22 (Reuters) - India gold futures may tread higher nearing the keenly watched 16,000-rupees mark this week, supported by a weak dollar overseas, with investors eyeing the outcome from the Fed monetary policy and G20 meet for direction. The most-traded October contract MAUV9 was 0.46 percent higher at 15,848 rupees per 10 grams at 6:04 p.m., when a weak dollar overseas supported the yellow metal, recovering from its one-week low of 15,665 rupees, struck on Monday in late-trade.
The euro hit a one-year high against a sliding dollar as dealers took advantage of the U.S. currency's rise the previous day to resume selling ahead of a Federal Reserve monetary policy meeting and Group of 20 summit later in the week. [USD/]
A weak dollar enhances gold's appeal as an alternative asset to the greenback.
Prices are still below the all-time high of 16,040 rupees, struck on Feb. 20, earlier in the year.
"Gold may test 15,950-15,975 rupees later in the week," said Gnanasekar Thiagarajan, director, Commtrendz Research.
"Gold may be in the range of 15,100-15,950 for the week," said Pradeep Unni, senior research analyst with Richcomm Global Services.
However, subdued demand from India, the world's largest consumer, may keep the upside limited, they added.
India's gold demand abated on Tuesday after picking up for two continuous sessions, as prices recovered from their one-week low.
The World Gold Council's January to June figures show India's gold imports fell 55 percent to 126.7 tonnes from 282.3 tonnes a year earlier. [ID:nBOM395131].
