Correction from record levels "is seen as an opportunity by many to get into gold"
Gold imports by India, the world's largest buyer, are set to climb for the first time in six quarters as a decline in domestic
bullion prices stokes jewelry and investment demand ahead of major festivals.
Overseas purchases may jump to as much as 200 metric tons this quarter, said Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation. That compares with the 157 tons in the fourth quarter of 2011, according to World Gold Council data. ...
A rebound in Indian imports may help sustain an 11 percent rally in global prices, headed for a 12th consecutive year of gains.
Bullion in India has fallen about 3 percent since climbing to a record last month after the rupee posted the biggest monthly gain against the dollar since January.
"The appreciation in the rupee has caused the
gold price to correct from the record levels and this correction is seen as an opportunity by many to get into
gold," said Chirag Mehta, a fund manager at Quantum Asset Management Co. "With the festival season and marriage season starting now, demand will gain further momentum." ...
"India should be a better buyer over the next two weeks from a seasonal perspective, but this remains highly contingent on the behavior of the rupee
gold price," said Edel Tully, an analyst at UBS AG in London.
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