Indian Wholesale Gold Buyers Stiil Hold Off Due To High Prices

According to a report by the Economic Times, wholesale buyers are waiting for lower prices before resuming buying. (Evidently, they think their stocks are fine right now for the current wedding season.)

There are stray deals as prices are still hovering near $1,150 (an ounce) since last 24 hours," said a dealer with a bullion dealing state-run bank in Mumbai....

"Demand could come back if it breaks $1,150," said another dealer with a private bank. India's March gold imports jumped nearly six times from a year ago, a trade body head said, as pent-up demand and steady prices since January revived purchases by the world's largest consumer of the precious metal.

Currently, the wedding season is underway in the world's largest consumer of the yellow metal, with a gold-buying festival -- Akshaya Tritiya -- slated in May.

That import number did delight the gold market when released, but it looks like the bulk of that increase came when prices were lower and were due to it. Now that prices are higher, despite the wedding season being underway, imports are likely to sink for this month.