Gold Holds Near 3-Week High as India Seen Buying Before Festival

26-Oct (Bloomberg) — Gold held near a three-week high on speculation the Diwali festival in India, the world’s second-largest bullion buyer, will boost demand.

While physical purchases in India have been weak this year, buying may pick up before the festival of lights on Sunday and the wedding season. Prices have also become more attractive, tumbling about 8 percent in rupees from a July high. Dhanteras, which takes place on Oct. 28, is seen as the most auspicious day in the year to buy gold in Hindu tradition.

“There are signs that buying is picking up in India,” Alasdair Macleod, head of research at bullion services company GoldMoney Inc., said by phone from Exeter, England. “Priced in rupees, gold is quite cheap, making it attractive for families seeking to invest.”