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Gold Drops on Waning Indian Demand & Risk-Off Sentiment

November 28, 2012 at 2:06 by Vladimir Vyun

Gold dropped yesterday as the dollar strengthened and on signs of waning demand in India. The economy of the Asian country is experiencing difficulties and that deters the Indians from buying the precious metals, especially now, when prices tend to rise. India is the second major gold consumer and its demand has a strong impact on the metal.

The dollar strengthened even after the eurozone finance ministers have agreed to ease the bailout terms for Greece. There is plenty of trouble besides Greece in Europe and traders did not feel encouraged by the agreement. Fears of the fiscal cliff in the United States added to the risk-off sentiment on markets.

Gold dropped from $1,749.65 to $1,740.60 per troy ounce yesterday on COMEX.

If you have any questions and comments on the commodities today, use the form below to reply.

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