Finotec News Archive - May 07 2008
Gold rising again on fears of inflation
Gold may rebound after falling for seven straight months as a religious festival and prices that are 15 percent below their record may increases demandTammy Wall
07 May 2008
Print this article
Subscribe to RSS
Gold rose in Asia for a fourth day as crude oil traded near $122 a barrel, boosting the appeal of the precious metal as a hedge against inflation. Another aspect that will help the gold will be the Gold imports by India, the world's biggest buyer of bullion. Gold may rebound after falling for seven straight months as a religious festival and prices that are 15 percent below their record may increases demand. The Akshaya Tritiya festival today, considered by India's 890 million Hindus as the traditional day to buy precious metals, will spur purchases of bars and jewelry, Ajay Mitra, managing director of the producer-funded World Gold Council, said in an interview in Mumbai. A recovery in Indian demand may help push up global prices that have declined to less than $900 an ounce for the first time in more than three months. Lenders including ICICI Bank Ltd, the nation's second-largest, and HDFC Bank Ltd. say the festival accounts for at least a quarter of their annual gold sales.
Finotec Analysis Team
07 May 2008
Print this article