Mumbai: Gold demand was subdued in Indian spot markets on Friday as spot prices rose to record highs tailing gains overseas, though a rise in the rupee limited the gains, dealers said.
“For the past two days demand was very weak. Spot prices were ruling at new high and as usual buyers are waiting for a correction,” said a dealer with a state-run bank that imports bullion.
The wedding season is underway in India, when demand for the yellow metal usually goes up.
The Indian rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, rose on Friday.
India’s demand for gold should be robust in 2011 despite the likelihood of higher prices, pushed by geopolitical tensions, according to the World Gold Council.