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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (21903)	6/21/2008 11:09:03 AM
From: LoneClone	Respond to of 192806

Indian gold demand remains weak mining-journal.com Gold demand in India, the world`s biggest consumer, is expected to improve in the coming months after more than halving so far this year but will remain below last year`s level because of high prices, trade officials said. Prices have dropped about 13% from a mid-March record of $1,030.70/oz, but they are still a third more than a year earlier. "People are there to buy, but they are looking for a major correction in prices," said Hamesh Arora, vice-president of the Bombay Bullion Association. Demand for gold in India hinges on a good monsoon, which boosts farm output and rural incomes. The four-month annual rains have begun ahead of schedule after the weather department forecast a near-normal monsoon. "If the monsoon is really good, there will be a pick-up in the rural areas," Sai Kannan, senior vice-president of brokerage Kotak Commodities, said. Indian demand in the first five months of 2008 fell by about 60%, compared with a year-earlier period, but is expected to pick up during the festival season that begins by early October, Mr Arora said. Imports in the first quarter slumped 75% from a year earlier to 42t, data from the World Gold Council (WGC) showed. In 2007, imports had risen 7% to 773.6t. "Indian consumers are pushing back purchases for prices to correct," said Ajay Mitra, managing director, India, WGC. Demand for gold jewellery was 71t in the first quarter and 31t for investment, both half their levels from a year earlier, WGC data showed. "It (demand) will only pick up once people gets used to these higher prices," said Gnansekhar Thiagarajan, director, Commtrendz Risk Management. But Rajiv Popley, director of jewellers Popley Group, said he expected sales to rise by a fifth at his stores despite the increase in prices.