LONDON, Nov 3: Gold rose on Monday, having posted its biggest monthly decline in a quarter century in October, as safe-haven buying resurfaced after the euro firmed against the US dollar and oil reversed losses.

The week ahead is likely to be another volatile one, Standard Bank said in a research note. Another decline in US total auto sales sales could put downward pressure on PGM prices, it said.

MUMBAI: Indian gold imports fell 27 per cent in October from a year earlier, a leading trader said, reversing a two-month surge as volatile prices and depreciation of the local currency hit demand at the peak of the festival season.

Imports in the world’s largest gold consumer fell to 44 tons in October from 60 tons in the same month a year ago, the president of the Bombay Bullion Association, Suresh Hundia, said on Monday.

Prices started falling only around mid-October, so demand was not very strong, Hundia told Reuters.

Two major Hindu festivals fell in October this year -- Dhanteras and Diwali -- when Hindus consider it auspicious to buy the precious metal and purchases usually peak.

India’s imports, which surged in August and September after a sluggish first half, may rise again if prices remain steady or decline, trade officials say.

After Diwali it always slows down for about one week but after that there could be some demand, said Harmesh Arora, vice president of the Bombay Bullion Association.

If the economy and the sentiment get any better, then people will buy, provided the current levels stay.

Hundia said silver imports in October were around 300 tons, slightly higher than September, but he did not provide a comparative figure for last year.

Demand for gold has been mostly slack this year, during which prices touched an all-time high at $1,030.80 an ounce in March. A depreciating rupee against the dollar added to local prices, discouraging buyers.

Wild swings in precious metals due to the deepening credit market crisis have also put off buyers.

The Indian rupee has depreciated 19 per cent against the dollar this year.

The local currency affects the landed cost of gold as most of the metal is imported in India and paid for in dollars.

In rupee terms, gold was at a life high above Rs14,300 per 10 grams on Oct. 10.—Reuters