Indian Physical Gold Picks Up On Easing Prices

According to a Reuters report webbed by the Economic Times, demand from jewellers improved on somewhat lower prices and expectations of increased retail demand as the wedding season reaches its height.

"Demand has improved. Jewellers are buying hoping for a rise in retail demand in coming weeks," said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House.

One other explanation is an inventory run-down. Back when prices were lower, there was a lot of stocking up in anticipation for the wedding season. The subsequent low demand, until recently, went with drawing down of that surplus.