Volatile gold prices could dampen Indian demand

MUMBAI, Apr 28 (Reuters): India's gold demand is likely to remain soft in second quarter after falling 18 per cent in the first quarter as retail purchases during a key festival early next month could be below normal because of volatile prices, the World Gold Council said on Thursday.

Lower purchases by the world's second biggest gold consumer could weigh on prices, which are trading near their lowest level in two months. But falling demand for gold imports could help narrow India's trade deficit.