Thursday, 29th April 2004 (3138 views)

People are returning to buying new gold again in India due to a strong rupee and stability in global bullion costs.

The world's largest gold consumer has revealed that gold recycling has slowed since the yellow metal has dropped in price.

Rajiv Popley, a leading gold trader, told Reuters from Bombay: "There is good demand for imported gold. People are finding the current price level comfortable to buy new gold."

Previously when prices were much higher consumers were selling old gold jewellery for new ornaments, but the move has returned to new gold purchases.

According to Planet Ark spot gold is currently at $397.50/8.00 and traders claim that old gold demand will increase once it reaches $400 an ounce.

Gold trading in Ahmedabad has seen a considerable increase with 1,000kg of gold traded daily, compared to 500kg in January.

 

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