MUMBAI (Commodity Online): How is the market responding to the continuing bull run in gold prices?
1)Jewellery sales continue to rise on wedding season in India leading to panic buys on concern about further rise in prices.
2)Bullion dealers are planning to bring out half gram gold coins to help customers buy gold. Gold coin/bar sales have risen 77 per cent to 108 tonnes in the June quarter against 61 tonnes in the same period last year, according to the World Gold Council.
3) Gold recycling on the rise as people bring old/unwanted jewellery to market
4)SPDR Gold Trust's (NYSE Arca: GLD) net assets zoom to $76 bn and may soon become the biggest ETF.
5) World gold Council hints that India's gold imports may cross 1000 tonnes in 2011 from 958 tonnes in 2010
6) At India's Multi-Commodity Exchange, gold futures continue to gain, MCX October 2011 contract rises 0.51% to Rs 28096
7) India's gold ETF holdings at 15 tonnes may double in a year.
"Despite a higher gold price, Indian and Chinese demand grew 38% and 25% respectively during Q2 2011 compared to the same period of 2010. This growth is likely to continue, due to increasing levels of economic prosperity, high levels of inflation and forthcoming key gold purchasing festivals," World Gold Council said in a recent report.
