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Monday, 6th June 2005 (4558 views)

Gold prices may rise for a third straight week following a renewed demand from jewellery makers in India, a new survey suggests.<br/><br/>Bloomberg reports that 27 of 40 traders, investors and analysts surveyed last week urged investors to buy gold, six said gold would fall and seven predicted little change.<br/><br/>Gold jewellery demand in India surged 72 percent to 179.8 metric tons in the first quarter as prices fell to a six-month low, according to London-based researcher GFMS. India is the world's biggest user of gold and the increase in demand is the largest since the first quarter of 2001, when purchases reached 189.6 metric tons.<br/><br/>Gold rose 0.8 percent last week to $425.80 an ounce on the Comex division of the New York Mercantile Exchange. Gold for August delivery rose $3.40 an ounce last week, in line with analysts' expectations. Experts also believe gold prices may be increasing due to political turmoil and the recent slump in the strength of the euro against the dollar.<br/><br/>"Jewelers build stock when they expect prices to rise," said George Milling-Stanley, New York-based manager of investment and market intelligence at the World Gold Council.<br/><br/>Jewellers accounted for 68 per cent of world gold demand in 2004.<img alt="track" src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=13041789"/>

 

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