Spot gold down; bargain-buying may begin

Spot gold down; bargain-buying may begin

Mumbai: India physical gold prices fell slightly on Tuesday, but traders may resume buying at these levels to stock up for the wedding season that begins from April, dealers said.

“Prices are below 16,600 levels (per 10 gm) now...I think there should be some buying now," said a dealer at a private bank, which deals in bullion.

Demand has been poor in the past few days as buying subsided on expectations of a fall in prices, and an unexpected rate hike by Indian central bank last week further hit sentiment.

The central bank unexpectedly raised its short-term borrowing and lending rates by 25 basis points each for the first time since it began cutting in 2008, citing intensifying inflationary pressures and a steady economic recovery.

Bargain hunting lifted international gold on Tuesday after it fell to its weakest in nearly a month in the previous session, while a steadier euro helped ease worries about tighter monetary policy.