Friday, August 24, 2012

Price rally affecting Indian gold imports!

Revelation by delegates at a major conference on August 24 about Indian gold imports to fall further this year holds much ground. According to reports by the World Gold Council, it fell to 131 tonnes or 56 percent in the second quarter. The fall is all because of global gold prices being driven higher by the weaker dollar and surplus cash in the market. Prices of gold have more than doubled since 2008, restraining purchases from price-sensitive Indian buyers.

As of August 24 statistics, gold prices, exhibited its biggest weekly rise, an uptrend by 3 percent since early June. No wonder demand in China for gold is increasing; this may trigger gold market to peak at $1,800-$1,850 an ounce by the end of this year. Gold is seen by the government as a dead asset, hence encouragement to the masses to spend on other Indian goods and consume things in India.

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