Gold may rise in London as manufacturers in India resume purchases
Gold may rise in London as manufacturers in India, the biggest buyer, resume purchases after prices dropped to a two-week low.
The metal has dropped 3.5 percent from a three-month high of $649.95 on Dec. 1. India's gold demand of 164.8 metric tons in the third quarter was 16 percent higher than a year earlier, while global demand was 2 percent lower, figures from the producer-funded World Gold Council show.
Buyers in India ``tend to play the ranges,'' said David Gornall, head of bullion and foreign exchange in London at Natexis Commodity Markets, doing business for gold buyers in India. They stopped buying when gold went above $640 and today resumed purchases at $630 to $634, he said.
Gold for immediate delivery was unchanged at $630.95 an ounce at 9:39 a.m. in London, after falling to $627.38, the lowest since Nov. 22. Prices are up 22 percent this year.