Gold prices unlikely to fall: Chidambaram

Hyderabad, May 4: The Indian government does not expect gold prices to come down in the near future.

Finance minister P Chidambaram told a seminar, held here as part of the Asian Development Bank's Annual deliberations, that he did ''not expect gold prices to come down in the near future.'' Mr Chidambaram, had earlier in a lighter vein, said India with its high propensity to consume gold, was ''part of the cause for high gold prices.'' The Minister explained that much of rural India considered gold, a safe investment avenue.

''With rising income levels, urban India too has started investing in gold.'' India along with China are one of the largest consumers of gold and are often blamed for the sharp rise in bullion prices. India consumes between 700-800 million tones a year.

Gold hit a new 25-year high of 676.30 dollars an ounce in volatile trade on Wednesday and is expected to continue at high levels.

UNI