Mumbai: India’s spot gold prices rose on Monday as buying gained momentum in the market after a correction in prices in the previous week, dealers said.
Spot gold prices fell over 2% last week.
“This is a short-term trend...prices came down slightly last week and the buyers are taking the opportunity to enter market,” said a dealer with a private bank based in Mumbai.
The wedding season, which will last till December-end, also supported the prices, dealers said.
Dealers, however, said fundamentals indicate there may not be rise in prices during the month on an expected jump in December gold imports.
India’s December gold imports are likely to spurt to 15-20 tonnes from 3 tonnes a year earlier, mainly on the back of the wedding season demand and easing prices, the head of the Bombay Bullion Association (BBA) said in an interview on 9 December.
Gold prices rose 0.8% in Europe on Friday, recouping some of the previous session’s hefty 3.5% losses, as the dollar ceded ground to the euro, boosting interest in the metal as an alternative asset.