LONDON, December 9: Gold prices fell to their lowest level in nearly 13 years on Tuesday when bullion was fixed at $ 285.50 per ounce. On Monday afternoon the fixing was recorded at $ 287.50.

The price has been slipping to lower levels most of the year and the latest pressure came this week from the surging value of the US dollar. "There is no sign of a bounce and it looks bleak enough to fall further," said one market analyst.

The gold market has been on the defensive for months cowed by fear of the central banks selling unwanted gold from their reserves and from producers hedging huge tonnages of yet unmined metal into the market.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.