Gold prices slip off peaks

Gold is gleaming bright in domestic markets, shadowing the trend in international markets. In Mumbai, gold (99.50 purity) closed at Rs 6505 per 10 gram while 99.90 gold closed at Rs 6540.

Not to be left behind, silver (.999) closed at as well to end at Rs 12035 per kilogram.

This comes on the back of back of a fiery run for the precious metal on the New York Mercantile Exchange's Comex which briefly touched a 16-year peak yesterday, at $440 per troy ounce before closing the day lower by $3 at $437.30.

Profit-taking hit gold as dealers who are reported to have taken into account a hint of a consolidation in the US dollar against the euro and oil's slide to a two-month low on the back of easing fears over winter fuel supplies.

However, the question on everybody's lips is where are the prices headed.

According to Krishna Nathani, head of research at the online trading site, indiabullion.com, "Traders are extremely bullish on bullion at the moment and the prices are poised to hit the $450 levels. The first resistance level of $440 has already been hit which has led to the present correction."

He, however, added that such extreme bullishness should also signal a reversal in the trend going by fundamentals, which should be expected by the end of the year.

"Gold would be a good buy at $424 levels, and it would be a good time to take profits by December," he said.

Further, in the local market, the trend is expected to slow down soon with the end of the festival season with the waning demand.

Besides, most of the selling should be expected to take place before the beginning of an inauspicious month in the Indian calendar beginning on December 15.