Indians go to the aid of the gold prices
Gold is a tangible, real asset, that’s why it is more trusted than esoteric financial instrument that haven’t got an inherent value. Nowhere more so than in the East it’s understood. In the upcoming week we may expect the demand for physical gold in India to pick up. It will support the gold prices and might provide a boost for a further upsurge.
India is the world’s biggest consumer of the yellow precious metal. The demand for gold at this period of year usually gears up because of the rising number of weddings and festivals such as Diwali and Dussehra, when buying gold is considered to be auspicious and prosperous.
Last week we saw that gold slumped significantly as the dollar rose on the speculations of a rate hike at the Federal Reserve meeting. On last Friday, however, the precious metal managed to stabilize and now it is going through the period of recovery hovering around the $1260 level located against the 200-day MA.