By Ruchira Singh MUMBAI (Reuters) - India's banks and brokerages expect gold prices to stay firm with global uncertainties surrounding economic growth and financial markets keeping the metal in the limelight for investment. The median of a Reuters poll of 12 banks and brokerages showed gold could be at 12,904 rupees per 10 grams at the end of December and 12,987 rupees at the end of March next year. The average price for 2008 was seen at 12,475 rupees. "One cannot foretell when the global financial crisis will end. One thing remains very apparent and that is investors continue to indicate their desire to get out of risky positions and gold has been the beneficiary," said Pinakin Vyas, chief manager, treasury, IndusInd Bank Ltd. The results of the latest poll are a slight scaledown from the earlier forecast in July when gold was seen touching 13,400 rupees by December and the average for the year was seen at 12,599 rupees. Analysts said volatility will rule high in the next two quarters with opposing tugs from fears of a likely recession on one hand and steps to ameliorate the financial crisis on the other resulting in wild swings for the metal. "A bullish trend in gold price is what I expect, but sharp periodic corrections cannot be ruled out as the dollar is expected to get a boost as Europe and emerging economies rush to the greenback," said Debjyoti Chatterjee, associate vice president at MAPE ADMISI Commodity Research. The dollar and gold generally have an inverse relationship as the two compete for funds. UPSIDE CAPPED However, the next two quarters are unlikely to be a one-way street for gold as it would face hindrances in its climb. "Fundamentally, the safe haven status of gold remains unchallenged, but its inability to sustain gains above $920 an ounce has resulted in a double top and weakened chart patterns, giving way to downside risks," said Rajini Panicker, head of research at MF Global Commodities India Ltd. A seasonal fall in gold buying after India's Diwali festival next week is another downside risk to the metal being imported currently at high premiums, analysts added. "Domestically, another factor that can limit the uptrend is the anticipation of the strengthening rupee against the dollar," said Harish Galipelli, head of research at Karvy Comtrade Ltd. The Indian rupee slumped to a record low against the dollar at 49.86 to a dollar on Thursday on expectations of further outflows from the share market. Galipelli said the rupee is expected to reclaim its losses and could strengthen to 47.5 to 48 to a dollar by the end of December.

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