Tuesday, May 31, 2011

Indian Physical Gold Demand Weak Once More As Monsoon Season Approaches

According to a Reuters India report, demand dormancy extended from last week to this one as gold held steady.
"It seems wedding season demand is over. From rural India, demand has fallen significantly as farmers are gearing up for the kharif [monsoon growing] season. They are spending money on seeds and fertilizers, not on jewelllery," said a Mumbai-based dealer with a private bank.

What they sow, they reap: the demand lull, although extended, should be temporary.

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