Indian Physical Gold Demand Dormant Because Of High Prices

According to a Reuters report webbed by the Economic Times, gold buying was almost absent because still-high gold prices were exacerbated by a weaker rupee.

Today demand was almost nil. People were not interested in buying at current level. They may enter into the market if prices fall by significant amount," said Ashok Jain, a Mumbai-based jeweler and a director at Bombay Bullion Association . Wedding season demand wasn't there in the market, he said.

The rush to buy on Akshaya Tritiya last May 6th seems to have taken demand away from the future. Current demand seems lower than is normal for this time of year.