The price of gold will come down to Rs 29,600 and that level would be a good level to buy from lower levels for both international as well as Indian market, said Aurobinda Prasad Gayan of Kotak Commodities.

"Looking at that kind of pattern here in Indian market which is around Rs 29,800 we should see by the coming down to Rs 29,600 or so," said Gayan

As the prices continue to decline, they are trading at a six-month low in the Indian market.

Gold prices are 0.25 percent down, just about holding $ 1,220 in the international markets. There are four central bank meetings this week starting with Bank of Japan on Monday. US Fed meeting is on Wednesday and Bank of England meeting on Thursday. This will not only impact the currency market, but also the precious metals space.

"Looking at the policy mix that is planned out this entire week, we will see a lot of volatility in the currency market and it will have a cascading effect on commodities, especially on gold," Gayan said.

Looking at the price behaviour for the last two or three weeks, gold is continuously holding on $ 1,220 and it is evident that the market is actually holding support, he added.

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