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Wednesday, 27th August 2008 (935 views)

Indians are buying large amounts of gold as the festive season is due to kick off in the country, it has been reported.

Hindu marriages are usually held in between September and November, causing a surge in demand for gold jewellery, according to Reuters India.

It said gold is the most common gift for Indian religious festivities and that it "forms an essential part of the dowry basket".

Managing director of American Precious Metals Advisors Jeffrey Nichols told the news source that because of the advent of the marriage season next week "India should provide strong support to the world market".

In addition, demand for gold from Indonesia is expected to rise as the world's largest Muslim nation gears up for the Ramadan fasting month, the agency claimed.

The Hindu Business Line also recently reported that the main branch of the State Bank of India, located in Coimbatore, is experiencing a shortage of gold due to the festival period.

 

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