Tuesday, March 22, 2011

Indian Physical Gold Demand From Dealers Still Weak

According to a Reuters report webbed by LiveMint.com, demand from the usual sources is weak because secondary gold is still selling at a discount.
“There aren’t any deals. Gold in the local spot market is available at a discount of Rs. 6,000 per kg,” said a dealer with a state-run bullion importing bank.

That doesn't bode well for net demand. There's only one place that the secondary market gold could have come from: holders wating to offload.

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