MUMBAI (Thomson Financial) - India spot gold prices fell 1.8 percent on Friday as the dollar strengthened against all currencies, pushing up buying support in the domestic market.
In London, gold prices fell to an eight-week low, taking direction from a firmer dollar and prices were seen slipping further.
The dollar surged across the board, hitting a five-month high against the euro and a 17-month peak against the pound as the European Central Bank's caution on the growth outlook reinforced worries of a faltering global economy.
'We are heading lower and the next level to test would be $845 and if we break that we could even go further down,' said a treasury official at Union Bank of India.
Domestic demand for the yellow metal is extremely heavy at the current price levels, he added.
In Mumbai, gold of 0.995 purity closed 220 rupees lower at 11,840 rupees per 10 grams and gold of 0.999 purity closed 220 rupees lower at 11,905 rupees per 10 grams.
Silver of 0.999 purity closed 915 rupees lower at 23,035 rupees per kilogram. tfn.newsdesk@thomson.com pvi/alo/ra COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
