Indian gold demand rockets

Demand for gold buying has increased dramatically in India following a slight reduction in purchase prices.

Although the gold price has not dipped dramatically, investors have hurried to take advantage and make a purchase ahead of the release of more economic data that could increase prices again.

Prithviraj Kothari, director of Riddisiddhi - one of India's largest gold and silver bullion dealers - told Reuters people had been thronging through the country's Zaveri Bazaar in order to buy gold.

"There is a huge demand … in the last couple of days alone ten tons may have been sold all over India," he commented.

Mr Kothari noted that the most popular purchase was 100 gram bars for investment.

A report from the World Gold Council earlier his week showed that demand for gold has continued to increase worldwide, while the amount produced by mines has decreased.

This could be supportive of gold prices thanks to supply and demand fundamentals.

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