India's price-sensitive customers, who drive the global gold demand, stayed away from gold buying festival of Akshaya Tritiya on Sunday, an indication demand may remain subdued through the rest of the year if global prices continue to stay firm.A quote from a dealer held up hope that demand will come back if prices fall further.
International gold edged up on Tuesday but held around $20 below a lifetime high struck last week, while another increase in holdings in the world's largest gold-backed ETF showed investors were keeping faith with the metal.
Another piece on the subject, webbed by BullionVault.com, contrasts the fall-off in demand during the Akshaya Tritiya festival with the rise in demand for gold ETFs.
Overall, it seems demand for gold at Akshaya Tritiya across the country was around 20-25 tonnes down on last year's 45-tonne sales, because of the high and volatile prices. Traders say many Indians are responding by buying smaller quantities to maintain the same expenditure, or recycling old jewelry. Those who can afford to spend more may wait for prices to stabilize before they Buy Gold.
After all, it was considered an auspicious day to buy gold...but how much gold isn't specified.