Fall in gold price psychological phenomenon: Wilbur Ross

After the big fall seen in price of yellow metal has seen in the past few days, it managed to pick some strength and rebounded to USD 1375 per ounce on Tuesday. Experts, however, have mixed opinions on the plunge seen in gold prices.

Wilbur Ross of WL Ross & Co. LLC believes deep correction seen in the metal is due to speculation and believes it is nothing but a psychological phenomenon. "That (speculation over gold) works as long as everybody thinks it will keep working. The day when everybody thinks it isn’t psychologically good anymore, it will certainly be over," adds Ross. Also read: US gold futures fall 1 percent, ETF holdings drop Meanwhile, Adrian Mowat of JPMorgan Securities says the Indian demand for gold has decreased due to new taxation regulations. "From February this year if one wanted to buy more than USD 1000 worth of gold, he would have to provide his income tax number. This has caused a collapse in gold demand in India, a major buyer of gold," says Mowat, playing down the influence of the wedding season on gold demand.