Mumbai: Indian spot gold prices fell on Tuesday on lack of demand, dealers said.
“Demand remained almost nil...some deals in scraps (scrap gold) is happening,” said a dealer with a private sector bank.
Gold demand is diminishing as the wedding season is about to end this week.
Domestic gold futures were trading lower tracking weakness in international gold, analysts said.
International gold prices fell to a six-week low on Tuesday, with firmness in the dollar sapping demand as investors awaited the Federal Reserve’s two-day policy meeting starting later in the day and its economic outlook.
A globally strong dollar weighs on the precious metal’s price as much of the country’s gold is imported and paid for in the US currency. A strong dollar may also dampen its attraction as an alternative investment.
Domestic gold futures mirror international prices, analysts said.