Indian Gold Buying Picks Up On Bargain Hunting

Yesterday's rout didn't lead to massive pulling of bids on hopes that prices would fall even further. According to a Reuters India report, buying kicked in as the lowered price was seen as a bargain.

"We priced in more than 300 kgs of gold since yesterday evening..., everybody is coming, be it domestic trader, exporter," said a official with a state-run bank bullion dealing bank....

India's gold imports in June are likely to fall, for the third straight month, by 75 percent from 29.9 tonnes a year ago as record prices dented demand in the world's largest market for the metal, the head of Bombay Bullion Association said.

However, a series of festivals starting from August could revive demand for the yellow metal, traders said.

"Both jewellers and investors, who were waiting for gold to fall are buying in good quantity for upcoming festivals," said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House, which offered to sell gold at 18,400 rupees.

So, some of the demand was from stockists preparing for the festivals.