By FXEmpire.com
Gold sales in India, the world’s biggest buyer of bullion, returned roared back to life as prices hit their lowest level in two weeks, with a government decision to remove excise duty on jewellery also aiding sentiment. After the government imposed the tax, in March, jewelers went out on strike for 3 weeks until the Finance Minister promised to review the decision.
The most-active gold for June delivery was 0.32 lower at 28,846 rupees per 10 grams, after hitting 28,802 rupees, a level last seen on April 24 weighed by overseas markets.
On Monday, the federal government removed an excise duty on branded and unbranded jewellery, effective March 17, the date it was introduced.
Elsewhere, gold fell for the second day, under pressure from the slide in the euro on the back of political uncertainty in Greece and a change of president in France.
Gold tumbled in todays as a backlash by voters in Greece and France against austerity measures weighed on the euro, while prices are supported by bargain hunters lurking around the lower end of a recent range.
The euro also fell hard, extending losses from the previous session after elections in France and Greece cast doubt on the political will and commitment to austerity measures seen crucial to tackling the euro zone debt crisis.
Gold has been taking cues from the currency market, and its safe haven status was outshined by the dollar, US Treasuries and German Bund during the political upheavals in Europe.
The sentiment in gold is likely to remain weak for a while, after the changes in European governments again triggered worries about the bloc’s debt crisis and pressure the euro.
The decline in oil prices, which have lost nearly 7 per cent so far this month, eased concerns on inflation and peeled off some of gold’s attraction as a hedge against rising prices, she added.
Gold cascaded down more than 2 per cent to $1,603.35 an ounce. Gold has been trading between $1,620 and $1,680 for about a month, with an unfavorable 
environment weighing on top and investors waiting to pick bargains at the lower end.
Hong Kong’s gold exports to China in March rose nearly 59 per cent on the month to the third highest level on record, while the gold flow from China surged to the most in at least two years.
In today’s session, the USD seems to be trouncing all of its partners, except the Japanese yen, which is continuing to build momentum as buyers move looking for a safe haven.
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Originally posted here
