Gold prices down on sluggish demand

Gold prices down on sluggish demand

Mumbai: India’s spot gold prices fell on Friday afternoon as buyers continued to stay away expecting a further dip in prices, dealers said.

“Prices have to come down to Rs16,500 levels before significant buying takes place," said a dealer with a private bank based in Mumbai.

Dealers said an expected jump in December imports will also keep prices at lower levels.

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.

However, a major drop in prices is overruled as the wedding season will last till December-end, dealers said.

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.