Indian Gold Demand Still Weak Due To Rising Prices

According to a report by the Economic Times, gold at almost 19,000 rupees per 10 g is staunching buying.

"We are in a lean period and with prices nearing 19,000 rupees people are not in a hurry to buy," said Pinakin Vyas, assistant vice-president, treasury with IndusInd Bank....

"Even the June numbers are not encouraging, confirming the weak trend," said Vyas....

"A couple of orders are there below $1,250 (an ounce)," said another dealer with a state-run bullion dealing bank, which was selling gold at 19,042 rupees per 10 grams.

As for the June numbers, Indian imports are expected to fall by 75 percent from last June's levels because of high prices. June '09 imports were 29.9 tonnes total; a 75% drop-off would make this June's figure a mere 7.5 tonnes.