Gold News

Developing nations 'to drive gold investment'

Demand for oil and raw materials in developing countries such as India and China will continue to drive investment in the commodities market, it has been claimed.

Live Mint reports that a new report from Datamonitor has highlighted the fact that this new investment will provide another dimension to the gold market in the light of a consolidation period in the US.

"The unprecedented expansion of world trade in all classes of exports is driving demand for resources across the board," Datamonitor financial services technology senior-analyst Damien Shaw-Wiliams said.

He added that the demand would also drive other industries, creating a self-reinforcing mechanism.

Recent research from the Gold Fields Mineral Service showed that gold demand rose by five per cent in 2007, much of which was from India, China and the Middle East.

Jewelry purchases are currently seeing a renaissance in India due to the arrival of the Akshaya Tritiya festival, which is celebrated by Hindus.

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