Indian Gold Demand Up

Source:

"India's gold ETF collections rose more than 82% on year in July."

Prior to August, India's gold imports could be more than 538 tons, topping purchases made last year. India's gold demand surges during key Hindu festivals, such as Dussera in October and Diwali and Dhanteras in October. Dhanteras is India's single-biggest gold buying day when people buy the metal to invoke prosperity.

Traders are hopeful the buying trend is here to stay as India sees economic growth of more than 8% and good farm incomes after a normal monsoon. Gold jewelry is the most common gift at religious events in India, which account for 20% of global demand for the metal.

India's gold collections in exchange traded funds (ETFs) rose more than 82% on year in July.

Total gold demand in Q210 rose by 36% to 1,050 tons, largely reflecting strong gold investment demand compared to Q209. In USD terms, demand increased 77% to $40.4 billion. Investment demand was the strongest performing segment during the second quarter, posting a rise of 118% to 534.4 tons vs. 245.4 tons in Q209.

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