Gold demand 'buoyant' in India

The weakening of India's rupee and the perceived stability of gold bullion is helping to keep investors buying gold, driving prices up.

Analysts are increasingly bullish as people act to take advantage of gold's appeal as an inflationary hedge, Reuters reports.

Devarsh Vakil, manager of research at Anagram Contrade, said he is optimistic about gold prices for the coming months.

"The dollar is at a two-month low and crude oil looks set to rise more … I expect gold to be buoyant," he said.

Debjyoti Chatterjee, associate vice-president at Mape Admisi Commodity Research, said he expects gold prices to rise by about 350 rupees ($8) per ten ounces by August.

Last month, it was reported that gold demand from Asia could rise as its people seek to emulate the success of western investors in the bullion market.

Anagram is amongst the leading retail broking houses in India. It offers comprehensive personal finance solutions and was established in1994.

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