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Monday, 23rd October 2006 (4889 views)

India's gold consumption before the Diwali festival season has more than doubled compared to last year's figure, according to an industry official.

The president of the Bombay Bullion Association, Suresh Hundia, has claimed that in the month leading up to Diwali, gold imports stood at 156 tonnes up from 70 tonnes in the corresponding month in 2005.

This represents an increase of 123 percent and could be attributed to a fall in the price of gold in the run up to the festival says Mr Hundia.

"During the festive season in Mumbai, the average consumption of the yellow metal is pegged at 200-300kg a day. Over the past 45 days the demand has doubled to 500-800kg a day," remarked Mr Hundia

Throughout the month of October, gold has traded internationally between $560 and $600 an ounce and this in contrast with $700 an ounce earlier this year.

India is currently the largest consumer of gold in the world and the country's demand reaches a peak during Diwali as gold is given as gifts during the period.

 

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