Gold prices in India could fall further in near term as downturns may keep US economy on edge

Gold prices rose on Monday due to a fall in the US dollar index, but analysts warn there could be a downturn soon. The US dollar is likely to strengthen because of fears of economic downturns, while the price of gold is inversely proportional. June gold futures rose by $184 to $59,537 per 10 gm on the MCX, but this type of increase may be short-lived. The uncertainty surrounding the US government's debt ceiling negotiations has impacted on gold's price for the month, though up by 8% or INR 4,400 ($68.19) on the year-to-date basis.

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