"Traders and investors are buying in small lots. Many are staying away to avoid being scorched by any price plunge," said Girish Choksi, a bullion dealer in the western city of Ahmedabad, a key bullion trading center....Some, though, continue to be cautious as they expect further price declines.
"This correction has come in just before the festival and that should help," said Gnanaeskhar Thiagarajan, director of Commtrendz Research. "Such a fall has rarely happened in the past."
He said all retailers may not be selling at lower prices as many had stocked up in advance for the festival, when prices were high.
The price correction is healthy as "it will shake off speculators," Mr. Thiagarajan added.
Thursday, May 5, 2011
Indian Physical Gold Demand Stays High Due To Upcoming Festival, Correction
According to a Wall Street Journal report, Indian buying of silver was inflamed by the gray metal's 20% correction. Gold's own correction has fueled demand before the Akshaya Tritiya festival tomorrow.