As the festive season of Diwali, weddings and auspicious ceremonies in India draws near, the demand for gold in the retail market has begun exceeding supplies. As noted on 20th August 2008, gold remained below the psychological level of Rs.12,000 per 10 grams (around $852 an ounce).
Gold futures scheduled for delivery in October amounted to a loss of Rs.1,000 per 10 grams on the MCX till date, influenced by the rising dollar and oil prices falling below $112 a barrel. The prices hit a four-month low.
In India, gold is a symbol of auspiciousness and purchase in retail market has begun much in advance; the marriage season falls between September and November and the Diwali celebrations are slated this year in October.