Gold trade in the world?s largest gold market, India, is likely to increase by 20-25% year-on-year in 2007, on the back of several parameters including positive forecast for the current festival season, a top official of the World Gold Council (WGC) said.
Talking to FE, K Shivram, vice-president of WGC, said, ?The outlook seems very positive, on the strength of a vibrant economy, rising disposable incomes, and a favourable gold rate, which has been less volatile and steady over the previous year.?
In dollar terms the gold rate hovered around $680/oz and in rupee around Rs 8,940 per 10 gram of .999 gold, down from Rs 9,330 per 10 gram on August 30-September 1 in 2006. Shivram said the festival season in India in the current year is expected to witness strong transactions in the retail gold market.
?Going by the trend, we could expect a robust feast for gold, and if prices are around what they are in current levels, we estimate a 15-20% increase of gold demand over the previous year,? he said.
All around, he said, ?The mood is vibrant. Retailers are making preparations for shoring up their inventories to meet the demand.?
Looking at current trend, he said the overall gold demand in 2007 including jewellery and retail investment would increase by 20-25% from 715.5 tonne in 2006.