SEASONALLY LOW DEMAND for gold from Indian households – the world's No.1 source of physical buying – is unlikely to affect global Gold Prices according to local gold traders and analysts.
"Because of uncertainties in the Eurozone, investors are shifting their portfolios to safe havens like gold," says SMC Global vice-president Rajesh Jain, quoted by Commodity Online in Mumbai.
"Global uncertainties will continue to bear on [global] gold demand, and thereby the near-term Gold Price," agrees Manoj Soni, director of AB Jewels in Ahmedabad.
Nearly 60% of India's private gold demand – which totaled some 700 tonnes in the peak year of 2007 – comes from smaller towns and villages, reports the Financial Times today, "highlighting how strong rural demand has emerged as an important driver of the economy and corporate sales."
Indian Gold Prices have risen at an average annual rate of 17% since 1971, according to data from the World Gold Council, rising in 26 of those 39 years.
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