Mumbai: Gold, which lost its sheen during last week due to weak global conditions, is likely to remain muted in the domestic market as well and rule in the range of Rs 27,500 per 10 grams, according to experts.
"The precious metal will remain bearish due to weak international fundamentals like worsening European debt crisis and sharp losses in equity markets. This is likely to drive gold prices to rule in the Rs 27,700-27,500 per 10 grams range in short term," Commtrendz Research Director Gnanasekar Thiagarajan said here.
In the US futures market gold prices closed at USD 1,584 an ounce on Friday, while in India gold MCX closed at Rs 28,308 per 10 grams.
In the domestic market, weakness in Rupee is mainly holding back the gold prices from further decline, Thiagarajan explained. On Friday, Rupee closed at over Rs 53.5 level against US Dollar.
He further explained that if the Indian currency gains strength, the gold prices will become weaker. Echoing similar view, Angel Commodities Head Naveen Mathur said the US Dollar which is gaining strength due to Euro zone crisis is also bringing down the gold prices.
However, the weakness in Rupee is holding up the gold domestic prices. Going by these fundamentals, the yellow metal is likely to rule at Rs 28,000-27,500 level, while in the international markets it may rule at USD 1,570 an ounce in near term, he added.
JRG Wealth Management Head of Research Harish Galipelli opined that weakness in gold has made it less attractive for investment purpose, as seen in the dampening demand in the domestic market.
In the short term, gold prices are likely to be in Rs 27,500 level in the domestic market, while in the global market it may rule at USD 1,500 an ounce on the lower side, he added.


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