Gold falls to one-month low Gold fell to a month-low as hopes for a breakthrough on the eurozone crisis faded, and the US dollar strengthened as investors turned to haven assets. Investor appetite to take large positions remained weak and the yellow metal fell 1.2 per cent to $1,555.51. With the lack of signs of any monetary policy decisions in Europe or the US, gold prices remained directionless, said brokers. Expect the same thin, nervous, jumpy conditions as usual and be ready to get in and out quickly. This is not a market for long-term positions at the moment," said David Govett, head of precious metals at commodities brokers Marex Spectron. One of the headwinds the gold market was facing was the lack of physical buying, especially from the Indian market. In what seems like a repeat of 2009, when buying by Indian consumers - who have traditionally been the largest buyers of the metal - dried up, purchases from the subcontinent have fallen sharply this year due to the weak rupee. The rupee hit a record low against the US dollar last week, and although the yellow metal has been rangebound in dollars terms, denominated in rupees, it is still close to record highs and more than 30 per cent above what it was a year ago. The consensus view is that Indian demand for gold is likely to fall 20-30 per cent over the full year, and this trend, which is not expected to improve as the country enters the monsoon season, has hit the physical market for the precious metal. Marc Ground, analyst at Standard Bank, said that robust demand from the Far East was counterbalancing the slowdown in Indian physical demand and that Indian consumers should come back as the "upcoming period of weaker seasonal demand gives way to the Indian wedding season, which usually sees a ramp-up in buying from August." But with the monsoon season also starting badly, and the rains not reaching the key farming areas in India, some analysts are worried about demand from farmers, who are usually among the keenest buyers of gold. And while appetite in China has picked up and has remained elevated over the past few weeks, this has "not been sufficient to compensate for the continued weakness" in Indian demand, said Suki Cooper at Barclays in New York.