Mumbai: India gold demand dwindled on Monday, a day after the biggest gold-buying festival as record high prices deterred buyers, dealers said.
India’s gold traders and retailers said late Sunday they saw large falls in Akshaya Tritiya festival sales, in an indication demand may remain subdued through the rest of the year if global prices continue to stay firm.
“There is no respite from high prices...these are straight reflections of a global trend but our physical market has to bear the brunt,” said aa dealer with a private bank.
MCX gold for June delivery was trading 1.04% higher at Rs18,352 per 10 grams, after hitting a high of Rs18,424.
International gold rose towards its record high on Monday as investors piled in, worried about Europe’s debt crisis and sovereign default in the euro zone.
The festival, which is more popular in south India, is the second-largest gold buying day in the world’s largest market for gold.