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Marriage Season Pushes Up Gold in India

Written By Brian Hicks

Posted September 7, 2012

All the way over in India, the marriage season is looming—and with that comes plenty of gold-buying. The blend of factors has caused gold to soar above the INR 32,000 mark (about $577) for the first time ever. Over the past two weeks, gold increased by INR 1,555 ($28) per 10 grams.

Heightened expectations that the European Central Bank would declare unlimited purchases of government bonds as a way toward lessening the economic stress on debt-laden nations in the Eurozone also helped gold rise. As the Indian marriage season gets into full swing, gold is expected to go even higher.

DNA India reports:

“Gold is on upward march and likely to touch new peaks in the coming days for festivals…,” All India Sarafa Association general secretary Surender Jain said, adding that a firming global trend and weak rupee will make imports of the metal costlier.

Since India depends mostly on imports for its gold, there is a close relation between global bullion trends and prices within the subcontinent. Over in London, gold gained 0.96 percent to hit $1,709.70 per ounce on Thursday . Silver also gained 1.8 percent to touch $32.85 per ounce, which is the highest level since early April of this year.