"We have done a few deals from morning. However, demand would be slack at least until pongal (a harvest festival in Tamil Nadu celebrated in later this month)," said a dealer with a state-run bullion dealing bank in Mumbai.On the other hand, investment demand has risen to the point where seven more banks are getting in to the gold importing line, raising the total from twenty-three to thirty.
India, which hardly mines any gold on its own, imported 624 tonnes of the yellow metal in the first three quarters of 2010, up 120 percent on year, World Gold Council data shows....The much-disseminated drop in jewelry demand has been made up for by increasing ETF demand. Those new bank are rural-oriented and small.
Banks contribute 80 percent of the 700 tonnes that India annually imports.
"The RBI is opening up and more banks are good for the industry. The network of gold supply would widen and there will be fair competition," said Pinakin Vyas, assistant vice-president with IndusInd Bank in Mumbai.
Evidently, there's still a lot of interest in gold buying amongst Indians. The price sensitivity is still there, but there's also a recognition of the bull market that shows little signs of stopping.
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