Thursday, 6th October 2005 (3003 views)

Gold demand is set to rise in India ahead of the festival season.

Industry experts have predicted that gold imports will rise, following an uncertain period due to the precious metal's record prices.

If prices fall sufficiently low then there could be an even larger increase in Indian gold buying, an official told Reuters.

India has experienced a good monsoon resulting in a prosperous harvest, which is a strong indicator of robust gold demand.

World gold trade is partially influenced by the strength of the Indian monsoon, as India is the world's largest market for gold.

In the first six months of 2005, India consumed 508 tonnes of new gold, which represents a rise of 57 per cent on last year's figures.

 

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