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Higher gold prices 'won't cut demand' in India

The head of the World Gold Council in Mumbai has explained that today (October 3rd) that demand to buy gold in India is as high as ever, despite rising prices.

Gold has staged a major recovery in recent weeks after falling from the peak of $1,033 per ounce recorded in March as the uncertainty in the financial markets boosts its appeal as an alternative investment.

Now Ajay Mitra has pointed out the desire to buy the yellow metal is part of the cultural make-up of people in India, not least with the upcoming Diwali and wedding seasons.

He said: "Consumers across seven cities in India came out very strongly that the intrinsic value of gold continues to command a very high preference in their minds, and they would continue to buy gold irrespective of what the absolute price is.

"As I said, it is intrinsic, it is auspicious, it is part of our genetic upbringing."

Mr. Mitra based his comments on a recent study which revealed that the trend cuts across economic classes, as families with incomes ranging from $200 to $2,000 all expressed a desire to dedicate some of their savings to investing in gold.

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