LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Gold Demand Slows........

[ggoldbbug]

India gold demand slows as prices firm up Mon Aug 27, 2007 2:30PM IST MUMBAI (Reuters) - India's gold demand was slack on Monday as higher prices deterred buyers, but dealers said a fall of around 100 rupees per 10 grams may bring them back to the market. Dealers also said last week's moderate sales had curbed the appetite of the market for the time being, but the Raksha Bandhan festival on Tuesday could induce some demand. "After Friday, demand has slowed down," said Pankaj Agarwal of Brijwasi Traders & Bullions Pvt. Ltd., a large wholesaler in Lucknow. "Tomorrow is Raksha Bandhan, if prices soften, there could be good sales." Agarwal said a fall to or below 8,800 rupees could spark off good buying, similar to what was seen the previous week when prices traded close to that level. Dealers in bullion selling banks in Mumbai had mixed views. One dealer in a large private bank said demand had tapered off from last week, while another dealer, also in a private bank, said some amount of buying was taking place. India is in the midst of its high-buying season with festivals approaching, yet demand has only been sporadically good. But, by and large, industry players believe the sub-9,000 rupees prices would help push sales when major festivals like Dussera and Dhanteras arrive. Following was the price being quoted by a bullion bank in rupees per 10 grams for .995 gold at 1 p.m