After losing some of its sheen last week due to weak global conditions, gold is likely to remain bearish and rule in the range of Rs 27,500 per 10 grams in near term, according to experts.
"The precious metal will remain bearish due to weak international fundamentals like worsening European debt crisis and sharp losses in equity markets. This is likely to drive gold prices to rule in the Rs 27,700-27,500 per 10 grams range in short term," Commtrendz Research Director Gnanasekar Thiagarajan told PTI here.
In the US futures market, gold prices closed at $1,584 an ounce on Friday, while in India gold MCX closed at Rs 28,308 per 10 grams.
In the domestic market, weakness in rupee is mainly holding back the gold prices from further decline, Thiagarajan explained.
On Friday, rupee closed at over Rs 53.63 level against US dollar.
Echoing similar view, Angel Commodities Head Naveen Mathur said the dollar which is gaining strength due to Euro zone crisis is also bringing down the gold prices.
Going by these fundamentals, gold is likely to rule at Rs 27,500-28,000 level, while in the international markets it may rule at $1,570 an ounce in near term, he added.
JRG Wealth Management Head of Research Harish Galipelli opined that weakness in gold has made it less attractive for investment purpose, as seen in the dampening demand in the domestic market.
In the short term, gold prices are likely to be in Rs 27,500 level in the domestic market, while in the global market it may rule at $1,500 an ounce on the lower side, he added.
