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India's central bank tries to limit speculation on gold

21 November 2012 Last updated at 02:04 GMT

India's central bank has barred banks from extending loans for gold purchase, in an attempt to limit speculation.

Gold is seen as a safe haven asset during turbulent economic conditions and its prices has been rising.

India is the world's biggest buyer of the precious metal. While most of it is used to make jewellery, many consumers are now buying gold for investment.

The BBC's Shilpa Kannan reports.