Weak India gold prices attract more buyers
MUMBAI (Reuters) - Indian gold demand rose on Friday as buyers and sellers kept themselves busy ahead of the peak festive season due to a fall in prices, dealers said.
"The demand is rising significantly as we are heading for a peak festive season," said Rahul Gupta of Delhi-based P P Jewellers.
The popular 12-day Ganesh festival has started and in the next two months India will celebrate Durga Puja and Diwali, both major Hindu festivals, when demand for gold increases for auspicious reasons.
Gold prices moved down on falling oil prices.
Oil prices dipped towards $107 on Friday, extending a near 8 percent fall this week as traders shed commodities positions to join a dollar rally and on signs that $100-plus prices were crippling demand.
Gold generally moves in tandem with crude oil as the latter signals inflation, while the metal negates it.
Falling prices and rising demand has led to a supply crunch in the market, said a dealer with a large private bank.
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