Mumbai, Nov. 2: Gold is expected to touch Rs 17,000 per 10 gram in December 2009 according to gold experts primarily because of weakening dollar, making it more costly for the Indian gold buyers.

During Diwali, in spite of the high prices of gold, the Indian buyers bought around 57 tonnes of the gold in October 2009.

However, with the expectation of a subdued demand during November 2009, gold imports during the month of October 2009 were lower at about 37.5 tonnes compared with 70 tonnes during the month of September 2009.

Mr Ashwin Derasari, a gold expert and senior official of Bombay Bullion Association said: “During the festive season we have witnessed revival in the buying of gold but going forward the customers would stay away from gold due to the high prices. This has reflected in the decline in imports of gold during October 2009.”

The weakening dollar would further boost the gold prices and it would touch Rs 17,000 per 10 gram during the next month, he added.

According to some experts, though, gold prices would soar in the long run, the dollar would stabilise in the short run and the gold prices would consolidate.

Explaining this point Mr Pramit Brahmbhatt, CEO of Alpari India said: “We saw that the dollar strengthen in the last week pushing gold prices down at $ 1,026 per ounce in the international market. Now dollar has weakened and the gold prices are at around

$1,055 per ounce. Going forward gold prices are expected to consolidate and it may see the level of $1,035 per ounce in the short term.”