Price Premium Returns for Diwali But India's Gold Industry Struggling
By GCRU Gold News on Tuesday, October 25 2016, 23:28 - Permalink
Gold Prices in India, the world's largest private holder of the metal, have finally returned to a small premium above global quotes, but the subcontinent's bullion and jewelry industry continues to struggle with over supply and weak demand.
Ahead of the key Diwali festival and then Hindu wedding season, India's domestic gold prices have now recovered over recent weeks to a small premium. But demand remains soft according to local traders, with dealers in traditional bazaars such as Indore's Sarafa Market also blaming changing shopping habits and chain-store competition for weak sales.
India's gold refining plants have begun operations again on this month's recovery in Indian gold prices, the Business Standard reports, reviving import demand after 2016's collapse in legal inflows.