Gold prices seen falling past 6-wk low

Gold could be volatile due to rupee moves and could fall lower if the currency appreciates,said Gnanasekar Thiagarajan,director with Commtrendz Research.

The rupee bounced from its near record low against the dollar on Tuesday. The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.

But,feel there will be bargain-hunting opportunities once prices come in the 1,500-1,545 levels. So,one cannot be bearish at present levels,said Thiagarajan,adding the downside from present levels is limited.

The wedding season is underway in India,the world8217;s biggest buyer of the yellow metal,and will taper off by the end of the month. The festival season has already ended.

Gold in the overseas market has been on a downward spiral weighed by a stronger dollar on worries that a worsening debt crisis in Greece could spill over into its neighbours and threaten the existence of the single currency.

Gold raced to a record of around 1,920 an ounce in 2011,when investors turned to the metal as a safe haven during the debt crisis in Europe. But bullion is moving in tandem with riskier assets this year,as investors turn to the safety of the dollar and the euro hits multi-month lows.

Silver futures may also fall following the yellow metal.

Silver for July delivery on the MCX was 1.17 percent lower at 53,007 rupees per kg. Selling is advised on rise to 53,500 for a target of 52,000/51,000 rupees,said Pranav Mer,senior analyst with Mangal Keshav Commodities.