Gold surged yesterday after traders returned to market after weekend.
Gold observed gains more than $1,390 an ounce as the dollar gave up early gains against the euro, and also because of last week's price dip of more than 2 percent that brought physical buyers back to the market.
Its China'spending interest rates decision that is ruling the direction of precious metals these days.
Also FOMC rate decision is expected today which is likely to provide a clear direction to the yellow metal.
Gold seems to have formed a strong base for itself around Rs 20,500/10gms at MCX. E-Gold was seen trading positive today.
