One of the largest markets for gold demand in the world is not showing a strong affinity for the metal. Indias second-most popular holiday to buy gold, Akshaya Tritiya, which falls on April 27, looms less than two weeks away, but demand is still down by 50%, says one wholesaler in Chennai, according to an article by Reuters. Gold and gold jewellery bought for this day are believed to bring good fortune. Yet, despite the auspicious custom, buyers are just starting to trickle in, noted traders. Gold has fallen to under $900/oz from the lofty highs of US$1,000/oz it hit earlier this year, and traders are waiting for gold to fall even further before demand picks up. In the GFMS Gold Survey 2008 Update 2 released earlier this year, gold demand from India was second to only East Asia for world gold fabrication and for world jewellery fabrication. Weak demand from India could mark a further descent in golds recent tumble.
Recent articles by this blogger are:
March 30, 2009: The good, the bad and the ugly: The magnificent seven
March 2, 2009: Visionary leaders