Indian Gold Imports to Rise for First Time in Six Quarters

Bloomberg reported that Indian demand for gold is set to rise, driven in part by lower buillon prices.  This may support a rally in prices.

As quoted in the market report:

India should be a better buyer over the next two weeks from a seasonal perspective, but this remains highly contingent on the behavior of the rupee gold price,” Edel Tully, an analyst at UBS AG in London, said in a report yesterday. “Indian imports are already 40 percent less than they were last year, and we understand inventories are generally light. Therefore, if the rupee behaves, fresh demand will also prompt restocking.

To view the whole Bloomberg report, click here.