Indians fall in love with gold bars

 India continues to top the chart of gold consumers, surpassing the cumulative demand of the west Asian market, China and Japan. Indians continued to buy gold despite the near 11 per cent rise in the price of gold and in fact stepped up their purchases of the yellow metal in the quarter ended June 2003.

 The rise in demand also defied the hardship caused by the poor monsoon of 2002, which curtailed disposable incomes in the rural India.

 According to UK based Gold Field Mineral Services (GFMS), the official data channel of World Gold Council (WGC), Indians bought a total of 184 tonnes of gold for jewellery during April-June quarter, up 36 per cent from 135.2 tonnes in the last comparable quarter.

 The increase in demand has surprised analysts in view of the rise in gold prices over the last year. The average gold price at London morning fix has appreciated 11 per cent quarter over quarter from $312.40 per ounce to $ 346.90.

 Accordng to GFMS, the overall recovery in gold consumption can be largely attributed to increased