Gold demand picks up as prices remain weak

Mumbai, Aug 21 : Dealers have said that the demand for gold has improved as prices remain below the psychological 12,000 rupee level mark.

"One month back, rate was around rupees 13, 800 and it has come down.

Now, our season has also started. Those who are committed to purchase especially for marriage, they have started to purchase gold, not ornaments right now.

Some people who have not purchased in last six months, seeing the rates have come down, they have started purchasing ornaments also," said Sanjay Madhusudan, the Manager of the Waman Hari Pethe jewellery shop.

India, the world's largest gold market, is also likely to step up purchases ahead of a series of key religious festivals that culminate in October.

Many marriages are likely to be held between September and November, while Diwali, when people buy gold for auspicious reasons, falls on October 28.

The dip in gold prices has provided people with an excellent opportunity to purchase gold and gold ornaments to celebrate these festivals in style.

"New trends are coming out as well as prices are getting lower. So, I think people are coming out and buying new fashion ornaments," said Rupa, a buyer.

The October contract on MCX has lost about 1,000 rupees per ten grams so far in August due to a fall in oil prices and strong dollar.

Most of India's gold is imported and the domestic price mirrors international trend.

ANI