One consistent thing I've read for the last couple of years is that most people in India treat gold jewellery as if it's a consumer product that they have to buy and not as an investment that will enrich them.

They are like any North American consumer looking for clothes or electronics, always looking for a sale or a cheaper price, therefore they aren't necessarily responsible for pushing up the price.

However, the growing upper middle class are beginning to look at basic gold ingots as an investment and this could forebode some decent price movement in the future, it just isn't having a major impact on the world gold markets right now, no matter what CNN or Reuters believe.

A more important driver will be the Chinese, who have traditionally held small amounts of gold as a currency throughout their very long history.