Indian Physical Gold Buying Picks Up Due To Price Shock

There is a perception in India that yesterday's plummet put gold on sale. According to a Reuters report webbed by the Economic Times, gold buying did pick up as a result of the drop.

"We are having good deals from morning, I priced in for 100 kgs at $1,312.50-1,314.80 (an ounce) today," said a dealer with a state-run bullion importing bank in Mumbai....

"I am clearing my old stocks and therefore charging lower premiums, otherwise the premiums elsewhere are at $2," said the state-run bank dealer.

Harvesting season is still in play, so retail demand is expected to be strong in the coming weeks.