Analysts have said that international gold prices could move in the medium range of $285-315 following the European Central Bank's move to abandon plans to sell 10 million ounces of gold from its reserves to raise funds to help the heavily indebted poor countries (HIPC).
Gold prices have turned volatile since then, moving initially upwards in the $320 range and then sliding to below $300 levels last week. During intra-day trading at the London markets yesterday the yellow metal was quoted at $ 293.5, down $ 5 over its previous close.
Domestic standard gold prices at the Bombay Bullion Exchange ruled lower at Rs 4620 per 10 gm against a previous level of Rs 4,650, while 22-carat gold prices ruled at Rs 4,275 levels (Rs 4,295).
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One of the analysts, Jeff Rhodes, general manager, Standard Bank London's Dubai
office, was, however, more cautious of where gold prices could settle.