Both international and domestic prices of gold have been hovering at low levels for the past couple of weeks, as investor confidence dipped against the background of the crisis in Greece, speculation about a hike in interest rates in the US and the impact of the forecast of a poorer-than-normal monsoon in India this year.

While the international rates were a little over the $ 1,170 per ounce mark, almost near their lowest level over the last two months, domestic prices in Mumbai were around Rs 26,700 per 10 gms, also almost at the low they have touched in the last two months.

Analysts expect that prices will continue around these levels over the next few days as Eurozone ministers discuss a possible bailout package for Greece. The country has to repay 1.6 billion euros ($US 1.8 billion) to the International Monetary Fund by June 30, or default.

Similarly, with US economy showing some improvement, many believe that a Federal Reserve rate hike, the first in nearly a decade, is imminent. The situation in China, where a stock market surge dulled the demand for gold, and India, where the monsoon has started on a sluggish note, is also impacting demand for the yellow metal.