More price dips awaited by Indian gold buyers
Following the yellow metal's recent rise to three-month high, on Thursday India's gold futures extended losses for a second day on profit-taking.
Debjyoti Chatterjee, associate vice-president with MAPE ADMISI Commodities in Mumbai said, "An absolute decline in demand from India would also weigh on prices."
In January 2009, India's gold imports dropped more than 90% to just 1.2 tonnes, from 18 tonnes during the same month last year, in the midst of high prices and ample stocks. The news came from Bombay Bullion Association on Thursday.
On the other hand, after registering its biggest daily percentage drop in more than two weeks the previous day, as stock markets rallied and the US Fed calmed inflation fears, the losses of overseas gold extended to trade below $900 an ounce on Thursday.
"In the medium term, gold could gain as investors would seek flight to safety amid persistent economic worries," added Chatterjee.
However, there could be some pressure on Gold and Silver for next couple of days. Medium term outlook is positive.