Forex reserves drop by $1.82 bn to $245.85 bn

India's foreign exchange reserves declined by $ 1.829 billion to $ 245.857 billion during the week ended December 5.Reserves had risen to $ 247.686 billion during the previous week after falling for several weeks. Foreign currency assets (FCAs) decreased by $ 1.82 billion to $ 237.148 billion from $ 238.968 billion a week ago.The FCAs expressed in US dollar terms include the effect of appreciation/depreciation of non-US currencies such as Euro, Sterling and Yen held in reserves.The gold reserves and the special drawing rights remained unchanged at
$ 7.861 billion and 3 million, respectively.

Gold's biggest fall in 25 years

Gold prices dropped 2percent on Friday, concluding their worst month in a quarter
century as a strong dollar and recession fears drove investors into less volatile assets. The key driver for gold at the moment is the U.S. dollar and it looks like it is going to strengthen again and that is definitely negative for gold. But the belief is that after some days of recession the gold prices too will stabilize.