Mumbai, India: India's spot gold prices rose on Monday Dec 21 as buying gained momentum in the market after a correction in prices in the previous week, dealers said.

Spot gold prices fell over 2 percent last week.

"This is a short-term trend...prices came down slightly last week and the buyers are taking the opportunity to enter market," said a dealer with a private bank based in Mumbai.

The wedding season, which will last till December-end, also supported the prices, dealers said.

Dealers, however, said fundamentals indicate there may not be rise in prices during the month on an expected jump in December gold imports.

India's December gold imports are likely to spurt to 15-20 tonnes from 3 tonnes a year earlier, mainly on the back of the wedding season demand and easing prices, the head of the Bombay Bullion Association (BBA) said in an interview on Dec 9.

Gold prices rose 0.8 percent in Europe on Friday Dec 18, recouping some of the previous session's hefty 3.5 percent losses, as the dollar ceded ground to the euro, boosting interest in the metal as an alternative asset.