Will India Fuel the Next Gold Rally?

Gold Advances as Indian Jewelers Buy Ahead of Wedding Season

Oct. 2 (Bloomberg) -- Gold gained in London for the first trading session in three as jewelers in India, the world's biggest bullion buyer, increased purchases in the run-up to the country's wedding and festival season.

Indian demand typically rises in the wedding season, which runs from late September to December. Jewelers also buy the metal for the Hindu festival of Diwali, or the Festival of Light, which starts at the end of the month. Purchases by jewelers accounted for 73 percent of demand last year, according to the producer-funded World Gold Council.

``We're seeing a lot of buying interest from India at the moment,'' James Moore, a Kettering, U.K.-based metals analyst with TheBullionDesk.com, said in an interview. This year's monsoon season was ``very good,'' boosting spending compared with 2005, he said.

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