Demand for gold jewelry jumps in India as curbs ease

Gold jewelry sales in India climbed in the first quarter as an easing of state curbs on bullion imports increased supplies, countering a drop in consumption in China, according to the World Gold Council.

Demand for everything from necklaces to bangles and rings surged 22 percent to 150.8 metric tons from a year earlier, while imports increased 28 percent to 226.9 tons, the London-based group said in a report on Thursday. Chinese sales slid 10 percent to 213.2 tons as a slowing economy and a rally in stocks curbed appetite for the metal, it said.

Increasing Indian sales may help support gold prices that have declined for three straight quarters. The South Asian country is set to become the world's top consumer this year as economic growth accelerates and China's booming equity markets reduce the appeal of the precious metal, said P.R. Somasundaram, managing director in India.