Local demand driving up gold prices

The gold rush during the ongoing festival season in the country is driving the firm rally in prices of the precious metal in international markets.

India is in a league of its own when it comes to the gold market, said World Gold Council (WGC) Investment Research Manager Natalie Dempster.

"The US is the biggest market in volume terms, but in tonnage terms India really dwarfs everyone else. Last year it accounted for around a quarter of total global demand in tonnage terms," she said in her report.

"Most of the international players are today looking at demand from India this festive season and demand from the rural India that have already firmed up the prices of gold in the international markets," a city-based commodity analyst said.