Diwali spurs gold demand

India has noted a rise in gold sales during this year’s Diwali and Dhanteras, a breather from the slow pace of sales last year, reports say. The increase was almost 20 percent reports say. This surge in demand has increased gold premiums which stood between $17-$18 an ounce during the ‘festive days’, while the week prior to Diwali, it stood somewhere close to 1$0- 12.

The rise in demand is being attributed to factors of gold prices falling, the promising outlook of a new government, which could well encourage the demand for gold jewellery into the wedding season.