Indian price slips to Rs 13K

In the local market, gold price slipped to Rs 13,000 per 10 gram as against Rs 13,205 on Tuesday. On the Multi-Commodity Exchange of India (MCX), bar gold December 2008 contract was down 1.04 per cent at Rs 13,136 per 10 gram and gold August 2008 contract was down 0.89 per cent at Rs 13,185 per 10 grams. “Gold prices are likely to react further and expected to trade between Rs 12,500-13,500 per 10 grams,” Bombay Bullion Association’s president, Suresh Hundia said.

“The downside risks to the US economy remain according to Fed and we expect by this statement that it has kept the door open for further rate cuts in the near future,” Karvy Comtrade analysts said.