How the weather can change the price of gold!

How can the weather influence the worlds gold prices you may say! Well it can and does.

The timing of India's monsoon period could have a substantial bearing on the price of gold as India happens to be the world’s top consumer! Not a lot of people know that to coin a phrase!

A good monsoon followed by a wholesome harvest is the perfect setting for India's gold marketplace as a decent monsoon often leads to an increase in gold buying, investment and jewelry demand following the harvest.

Experts have stated that a healthy rainfall safeguards healthful crops in India which also ensures a strong setting for gold investment with money around to purchase gold.

It has also been noted that a poor monsoon could possibly reduce India's gold demand by some 100 tons this year alone and this on a global scale could cause the gold markets to fall and subsequently the precious gram price for gold.

India imports most of its gold. The nation imported some 970 tons of gold in 2011, many say due to a good harvest so say the World Gold Council.

Investors globally will keenly await information on India's gold demand that may help steady prices, which scored a record high $1,921 a troy ounce in September 2011 but have dropped recently mainly due to fears over the euro-zone crisis and worlds enonomy in general.

Thankyou for reading our gold blog. Look out for the next one soon.