MUMBAI (Reuters) - India gold futures may extend losses this week weighed by expectations of a strong dollar, with investors awaiting the Federal Reserve policy meeting decision and its views on the economy, analysts said. The most-active April contract on the Multi Commodity Exchange of India (MCX) was trading 0.21 percent higher at 16,487 rupees per 10 grams at 3:30 p.m., after losing 2.9 percent in the previous week. "Gold looks bearish this week on the back of a weaker euro amid uncertainty relating to Euro zone," said Gnanasekar Thiagarajan, director, Commtrendz Research. Gold may trade in the range of 16,200-16,500 rupees, said Thiagarajan. Economists widely expect the Fed, the U.S. central bank, to repeat its promise to keep borrowing costs exceptionally low for an "extended period" when it concludes its policy-setting meeting on Tuesday. The federal funds rate has been near zero since December 2008. "Traders would like to trim positions ahead of FOMC announcement," said Harish Galipelli, head of research, JRG Wealth Management. The euro slipped as analysts said a potential financial aid package for Greece would not be enough to ease overall sovereign debt concerns within the euro zone. Gold and dollar move in opposite direction as the two compete for funds globally. A strong dollar dims the yellow metal's appeal as an alternative investment.

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