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India's joyful gold buying spree continues, defying record price

Indian purchasers of gold brushed off record high prices and made purchases for the Dhanteras and Diwali festivals beginning on Tuesday, hoping bullion would continue to rally and provide promising returns amid a cooling stock exchange, market authorities informed Reuters.

Robust need in the world's second-biggest gold customer could even more support worldwide prices, which struck record highs last week. Rising need for imports of gold could likewise expand India's trade deficit and put pressure on the rupee .

People are still into gold huge time, even with rates at record highs throughout Dhanteras. With gold providing much better returns than the stock exchange, there's been strong need for coins and bars, stated Saurabh Gadgil, chairman of PNG Jewellers.

Indians were celebrating Dhanteras on Tuesday, a day considered auspicious for buying gold and among the busiest gold-buying days in India.

Regional gold costs jumped to a record high of 78,919 rupees per 10 grams last week, marking an increase of more than 31% since in 2015's Diwali. India's NSE Nifty 50 share index has actually dropped about 7% from a record high hit on Sept. 27.

Financiers are working to diversify their portfolios by adding to or increasing their allowances in gold and silver, Gadgil stated.

In worth terms, turnover during this year's Dhanteras is expected to be significantly higher than last year due to higher prices. In volume terms, it might be somewhat lower or around the exact same level as in 2015, Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA), said.

Indian dealers on Tuesday charged a premium << XAU-IN-PREM > of up to $1 an ounce over main domestic rates-- inclusive of 6% import and 3% sales levies, up from the last week's discount of $4.

Local silver futures struck a record high of 100,081 rupees per kg recently.

Need for silver coins and bars was strong today, as silver has delivered much better returns than gold in current months, stated Chirag Thakkar, CEO of Amrapali Group Gujarat, a leading silver importer.

(source: Reuters)