Indian Gold Demand Stays Weak

Although prices are falling in rupee terms as well, Indian gold demand is still dormant as buyers wait for even lower prices.

"I have been doing stray deals since 2-3 days," said dealer with a state-run bullion dealing bank in Mumbai....

"Buying can come in only if gold breaches USD 1,200 level," said another dealer with a private bank.

Rural India, which accounts for 65% of the total demand, divert their savings to buy seeds and fertlizers for their kharif crops, leading to limited demand for the metal during the sowing season.

India has also been witnessing slackness in gold buying since the start of May as record high prices dented demand.

Sub-$1,200 prices seem to be the bargain point in other buying areas too.