Indians Not Buying Gold Despite Price Drop

Reuters reported that despite this week’s sharp drop in the gold price, Indians are not stepping in to snap up the metal. Market watchers had hoped the slide would spur buying there or elsewhere in Asia.
As quoted in the market news:

The last big slide in gold prices – a 13% drop in just two consecutive trading days in April 2013 – prompted weeks of long queues of Indians outside gold showrooms.
Not this time. India’s gold appetite – it accounts for more than a fifth of global demand – remains sluggish, with only modest local premiums to the global spot benchmark.

Carsten Fritsch of Commerzbank AG (ETR:CBK) said at the Reuters Global Gold Forum:

That’s really a bearish sign, when the main consuming region remains on the sidelines after such a price drop to a multi-year low. Who’s going to buy gold if not the Asians?

Click here to read the full Reuters report.