Monday, 1st August 2005 (4000 views)

It is looking increasingly likely that the price of gold will rise for the third straight week, following speculation that demand for the precious metal will continue to rise in China and India.

A Bloomberg survey found that 35 of 46 traders and analysts questioned on July 28 and 29, recommended buying gold, as they anticipate the demand for gold to outweigh the supply from sales by European central banks.

Last week, gold rose 1.1 per cent, and price rises is expected to continue.

Chief executive officer at Newmont Mining Corp, Wayne Murdy, commented to the news agency: "What we're seeing in demand is very positive.

"Once you get into the second half of the year -- into August and September -- the jewellery trade starts to build inventory for marriages in India and the Chinese new year."

India is the world's biggest buyer of gold, and last year the metal rocketed by 4.8 per cent in August, because of increased jewellery demand during year-end holidays and the wedding season in the country.

Prithviraj Kothari, director of Mumbai-based Riddhi Siddhi Bullion, added: "Gold prices will rise ahead of the festive demand in India."

 

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