Demand for gold picking up

India imported 11.31 tonnes of gold in November 1998. Ahmedabad, the main city of the western state of Gujarat accounts for 30 to 40 of India8217;s gold imports. quot;Demand had come off in September and October, but with prices now in a band of 280 to about 290 an ounce, we are seeing a comeback,quot; said BPR Prabhu, assistant general manager at the gold banking division of state-run Corporation Bank inMumbai.

India is the world8217;s largest gold consumer and imported 614 tonnes in 1998, the World Gold Council said. Imports through unofficial channels added about another 10 per cent to the total.

Domestic demand for gold had been hit during the last few months due to the spike in prices, traders said. Indian demand is normally at its peak in the three-month festival and wedding season which starts in September and peaks on Diwali 8211; the Hindu festival of lights 8211; which was celebrated on November 7, this year. quot;Sale of retail gold, particularly in the last two weeks has shown a jump after a bad Diwali season. We expect this trend to continue,quot; a trader at one Bombay-based foreign bank said.

Dealers said Indian imports would continue to show an upward trend if prices remain around 280 to 300 per troy ounce. quot;But if the rates go beyond 300 an ounce, demand will again come down,quot; Thakkar said.