Bullish Bullion

The bullion market is holding back its sales after the major decline in this month. Asian countries are buying the gold heavily as the drop in the gold prices this month. The bullion's drop is attracting jewelers looking to build stocks before next month's Indian wedding season and the year- end holidays.

India, Thailand, Indonesia, the whole region has been buying heavily in spite of the 8 percent drop in the precious metals.

It seems increase in sales obviously stimulate the proposals of mergers between the gold producing companies like Gold fields and Barrick Gold. These signs may reinforce the strategic move and gives lots of synergies and benefits.

Its probably good news for the Central Bank Gold Agreement (CBGA), which has been looking for the sales boost to reach target by the year end. The CBGA has to sell the 160 tonnes more to achieve the overall target of 500 tonnes.