Precious metals remained subdued in the last trading session as they seem to have entered in to a consolidation phase after the recent rally. Gold ended slightly up in a choppy trading on Tuesday as a dollar bounce kept bullion investors largely on the sidelines. Silver futures ended in a negative territory, shedding 0.12 percent on COMEX.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,094.15 tonnes as of Sept. 29, unchanged from the previous business day.

Gold prices are up more than 10 percent so far this year, with the most recent leg higher driven by dollar weakness, technical momentum and concerns about potential inflation.

Gold and gold receivables held by euro zone central banks fell by 58 million euros to 231.9 billion euros in the week ending September 25, the European Central Bank said on Tuesday. Gold holdings fell because of the sale of gold by one euro zone central bank. The ECB said the move was consistent with the 2004 Central Bank Gold Agreement.

India gold futures may tread lower this week on expectations of a strong dollar overseas, dimming the yellow metal's appeal as an alternative investment.

India gold traders continued to stock-up on Tuesday to meet festival and wedding demand as prices stayed near their twoweek low, dealers said. "Sales have been up by one-and-a-half times compared to last month due to festivals. There are good orders below $990 (an ounce)," said a dealer with state-run bullion dealing bank in Mumbai.

The dollar rose against the euro and a basket of currencies and was up against the yen after seesawing on Tuesday.

Gold has opened higher on COMEX backed by a weakness in the dollar after giving a flat close yesterday. We expect this trend to reverse later in the day as the risk aversion and consolidation in the market may strengthen the dollar and thereby pressurize prices of precious metals.