Gold Dropped, but Expected To Rebound

Gold may rebound from the lowest prices in two months on demand from jewelers, who need to stock up for a peak in sales during India's wedding season and holiday festivals that begin next month.

Eighteen of 34 traders, investors and analysts from Sydney to Chicago surveyed by Bloomberg News on Sept. 7 and Sept. 8 advised buying gold, which fell 2.4 percent to $617.30 an ounce in New York last week, the lowest closing price since July 3. Eight respondents said to sell, and eight were neutral.

In India, the largest gold-buying nation, jewelry demand plunged 43 percent during the second quarter from a year earlier, the producer-funded World Gold Council said.

Gold futures for December delivery dropped $15.30 last week on the Comex division of the New York Mercantile Exchange.