India's gold demand drops below China in 4th qtr


Wild price swings caused by a volatile rupee sapped Indian buying interest in gold in the fourth quarter of 2011, with imports well short of expectations and no pick up expected this year, dropping it behind China for the first time.

India's gold imports in the last quarter of 2011, traditionally peak consumption season, fell 44 per cent to 157 tonnes, although total imports last year rose 1.1 per cent to a record high of 969 tonnes, the World Gold Council said on Thursday.

Indians are usually the biggest buyers of gold in the world and from October to December, the calendar is full of festivals and weddings, creating many opportunities for people to flaunt their finery.