Inain Gold Buying Remains Weak, Despite Discounts

As explained in a report in the Economic Times, high prices combined with seasonal weakness has weakened demand to the point where some sellers are offering discounts on bars:

"At the retail level, they are offering discounts of Rs 200-300 rupees (per 10 grams) [about 1 to 1 1/2%] ... but no one is interested," said a dealer with a state-run bank in Mumbai....

"We are selling, but in very minimal quantity, like we did only 50 grams since morning at 1,233/1,234 (an ounce)," said another dealer with a private bank.

Rupee strength has held the price down for Indian buyers, and continued strength may entice some buyers back in, but the slow season has definitely arrived.