MUMBAI (Thomson Financial) - India spot gold prices edged higher at the close on Monday, tracking the international markets, but the gains were limited after the International Monetary Fund said it would sell more than 14.2 million ounces of gold, currently valued at around $13 billion.
At 1.45 p.m., in London, gold was trading at $913 per ounce, after steadying in early London trade near $920, well supported by persistent dollar weakness, high oil prices, fears over the economy and expectations for a U.S. interest rate cut.
'The demand for the yellow metal is very low in the domestic market,' a treasury official at the state-run Corporation Bank said.
Dealers expect prices to fall to $895 to $900 an ounce levels during the week.
Mumbai gold of 0.995 purity closed 75 rupees higher at 11,935 rupees per 10 grams, while gold of 0.999 purity closed 65 rupees higher at 11,995 rupees per 10 grams.
Silver of 0.999 purity closed 65 rupees higher at 23,875 per kg. tfn.newsdesk@thomson.com pvi/ssa/rfw 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
