Gold Buying in India Dries Up with Monsoons
Source: The Economic Times (6/9/11)
"Farmers, the traditional buyers, rushed in to buy equipment on early summer monsoon rains."
Gold buying in India, the world's biggest gold consumer, shrank as wedding season neared its end and farmers, the traditional buyers, rushed in to buy equipment on early arrival of the summer monsoon rains, dealers and traders said.
The monsoon period is a seasonally slack for gold demand and dealers expect traders to replenish stocks from September, when festivals and weddings re-start.
But any price dips could trigger some early restocking by traders.
Premiums remained steady in the range of $1–$1.5 an ounce over London prices, and scrap flow was limited.
"Scrap is not hitting market as the general belief is that the price trend is still on upside," said an official at a private bullion importing bank in Mumbai.