Sadanand Shetty, senior fund manager at Taurus Asset Management, said, "Globally, big-risk headwinds are easing off. Currencies of troubled nations in Europe have shown a definite improvement. Amid this, I do not see a repeat of earlier rallies in gold. In terms of returns, the yellow metal would take a backseat."
Commtrendz's Thiagarajan said for any insight into the direction in which gold was headed, he would look out for a withdrawal of the Federal Reserve's monetary easing. "If QE continues and the European Union economies signal a recovery, the price of gold would decline, which would discourage investors to put in additional money in the metal," he said.