Indian Gold Demand Close To 2007 Levels

In a Reuters India interview, the World Gold Council's Ajay Mitra says Indian gold demand for the first quarter this year could match 2007's level as the slumps of 2009 are shaken off.

"Demand for gold in Q1 has been robust, growth in value terms are in double digits, close to 40-45 percent...," Ajay Mitra, managing director India and Middle East, WGC, told Reuters in an interview, ahead of the release of quarterly demand figures on Wednesday, adding "they look close to 2007 numbers."

"We expect the momentum to continue in coming months on excess surplus cash and liquidity," said Mitra, adding "gold offers better returns than other asset class."

He also intimates that expectations for higher prices are helping push up demand.