Posted on

India prepares for shining return of gold demand

Festival season is kicking off in India – a period in which gold sales traditionally spike in the world’s largest consumer market for the precious metal.

This year investors are watching the key market particularly closely, following a period of muted demand when bourses have rallied and supply has been choked.
The recently elected government of Prime Minister Narendra Modi surprised industry analysts by keeping import controls unchanged in its July maiden budget, in spite of an improvement in India’s trade balance.

At the same time, gold demand has become subdued in India, as domestic investors favour equity markets, which have risen 25 per cent in the past six months on hopes of renewed economic growth following Mr Modi’s victory in May.

Read More Here :