New Delhi, Aug. 19 -- India's gold market is showing signs of a recovery that could strengthen further during the upcoming festive season, with improving jewellery demand, steady investment interest and a rebound in imports pointing to firmer market conditions, according to the World Gold Council's latest India Gold Market Update. While elevated prices could continue to influence jewellery purchases, investment demand is expected to remain supportive.

Gold prices have regained ground after a sharp correction in June and a period of stability in July. International gold prices rose 9 per cent in the first two weeks of August to USD 4,391 per ounce, while domestic prices gained nearly 7 per cent to Rs 1,51,744 per 10 grams as of August 14....