Gold demand in India supported by religious festivals – Commerzbank
|Record high local Gold prices have apparently had no dampening effect on Gold demand in India recently – quite the contrary, Commerzbank's commodity analyst Carsten Fritsch notes.
Gold premiums in India jump to $25 amid festival buying
"According to a Reuters report, the premiums that dealers charge for the purchase of Gold on top of the official price, including import and sales taxes, have risen to as much as $25 per troy ounce last week. A week earlier, they had been $15. An industry representative spoke of strong investor interest triggered by the price increase, while jewelry demand remained weak."
"According to a bullion dealer, jewelers had stocked up on small denomination coins and bars ahead of the religious festivals of Dhanteras and Diwali last weekend. It is traditional in India to give Gold as a gift on these holidays. Therefore, in our opinion, it would not be surprising if demand slows down after the holidays and premiums decline again in the coming days."
"Swiss Gold exports, published today by the Federal Customs Administration, also point to rising Gold demand in India in the run-up to the festivals. According to the data, Gold deliveries to India nearly doubled to 30 tons in September. At the same time, it was the highest level this year."
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