Wednesday, May 18, 2011

Indian Physical Gold Demand Weak Despite Wedding Season

Perhasp demand was saturated by the Akshaya Tritiya festival last May 6th. According to a Reuters report webbed by the Economic Times, traders weren't buying that much gold despite the wedding season being underway.
* "Demand was weak. People were waiting for correction. They were waiting for level of around $1,470 an ounce," said a Mumbai-based dealer with state-run bank dealing in bullion.

* "Wedding season demand has been falling. Most people have already made purchases for weddings," said a dealer with another state-run bank. Wedding season in India, the world's largest consumer of bullion, will continue through May.

It looks like yesterday's plummet gave those buyers the idea of going for $1,470. That's a dollar below the noontime bottom.

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