India gold demand low, discounts continue!

Gold prices are creeping up slowly, and in india the consumers still cant digest the high gold prices but its just a matter of time that everyone has to accept that gold is not likely to come down soon..

MUMBAI (Reuters) - India's gold market saw little demand for the yellow metal on Tuesday that kept local prices discounted by around 100 rupees per 10 grams over what banks and trade houses quoted, dealers said.

"There is no demand and gold is being recycled," said Chanda Venkatesh, proprietor of Chanda Anjaiah Parameshwar, a large bullion wholesale company in Hyderabad.

Venkatesh said he was not sourcing gold from the banks which comprises fresh imports and is therefore priced in dollars, as local sellers are "continuously selling."

Read Full article