India Gold Imports Around 40 tons in October.

Indian jewelry demand appears to be holding up even with gold at historically high prices, says a research note from Commerzbank.

Analysts cite reports from the Bombay Bullion Association saying that imports into the key consuming nation of India could top 40 tons in October and that imports for the full year could reach last year’s level of 340.

“Jewelry demand is evidently accustomed to the higher price level,” Commerzbank says. “Slight drops in prices are being used as buying opportunities even at the current high level.” This is reflected in a strong demand for gold in India in the run-up to the early-November Diwali festival, the bank says.

Meanwhile, Commerzbank cites data showing China was a net silver importer in September and that the 3,993 tons of silver imports during the first nine months of the year was nearly 25% more than a year ago.

“China is now the world’s third-largest silver producer, but also has one of the fastest growing domestic markets for silver,” Commerzbank says. “Should high economic growth continue in China, this should result in a further rise in the demand for silver.”

Source : commodityonline.com