Mumbai: India’s gold demand for the quarter to end March showed ‘continuing improvement´ on the back of festivals and a strong rupee, the World Gold Council said on Friday.
“Preliminary reports on Q1 2010 demand trends in India suggest a continuing improvement, as witnessed in Q4 2009, and supported by seasonal festivities which include a number of Hindu New Year festivals,” the WGC said ahead of the release of its quarterly report in mid-May.
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The Indian rupee, which gained 3.6% in January-March period, made the yellow metal cheaper for local holders.
India, the largest consumer of the yellow metal, accounts for 20% of the global demand for gold and jewellery is the most common gift during festivals and religious events.
India recorded a 13% rise in consumption to 180.7 tonnes in the fourth quarter to end December. However, the association of gold miners said the local pawn programs is likely to continue to tame recycled gold supply relative to 2009.
India recycles about 200 tonnes of the yellow metal on an annual basis.