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http://www.theaustralian.news.com.au/business/story/0,28124,25722962-5005200,00.html

India, China pushing gold price
Robin Bromby | July 02, 2009
Article from: The Australian



"WE pay far too much attention to the daily movements of gold.

Will it go through $US1000 per ounce or will the US economy and dollar stage a miracle recovery, sending the yellow metal back below $US600?

You have to see the context. Or, if you prefer, the big picture.

The market has already discounted the forthcoming sale of about 400 tonnes by the International Monetary Fund. We now indications that, in fiscal 2010, India will import about 600 tonnes of the metal, near enough to about a quarter of global mine production.

And there are rumours sweeping around the world that China, just a few months after revealing it had been increasing its gold reserves over the past three years, will spend about $US80 billion ($98.9 billion) to buy more - and, at present prices, that would amount to the equivalent of almost 90 per cent of global mine output for a year.

Now these aforementioned events may intertwine - you might get India and, particularly China, taking up all or some of the IMF sale, which is why the market was largely unfazed about 400 tonnes coming on the market.

The bottom line: one way or the other, there’s going to be plenty of demand for gold......"