High prices dampen gold buying on 'Akshaya Tritiya'

Gold demand on the auspicious day of Akshaya Tritiya in the national capital remained subdued due to high prices of the precious metal, which on Tuesday rose marginally to Rs29,100 per 10 gm, traders said.

In Gujarat, too, sales were lower by 25-30% compared to last year, they said.

"Gold sales were lower than last year. The demand was less because of high prices. People are confused whether to buy now or wait for price fall, if happens in future," a GTM Jewellery Mart official told PTI.

Gold prices have risen by almost Rs7,000 to Rs29,100 per 10 gm since last year's Akshaya Tritiya, when prices were ruling at Rs22,120 per 10 gm.

Echoing views, an Omsons Jewellers official said the sales were average and customers were buying gold in smaller quantity because of high rates.

Maximum sale was in gold coins followed by jewellery like earrings of lighter weight, he added.

Delhi Jewellers and Goldsmith Association General Secretary Ramavtar Verma also said gold sales were much lower than last year.

"There was token buying of gold coins. There was not much sale in jewellery. Shop keepers refrained from keeping heavy stock on the festival day in view of pending issue of imposing of excise duty on unbranded jewellery," he said.

In Gujarat also, there was brisk buying on Tuesday and sales were down by 25-30% over 2011 Akshaya Tritiya.

"We expect sales of 500 kg of gold jewellery across Gujarat on this auspicious day, which includes buying from nearly 15,000 small and big jewellers' outlets," Gujarat Jewellery Association President Zaveri Lal said.

He, however, said that sales have declined by 25-30% today as compared to last year.

Jewellery traders said that buying remained brisk throughout the day, especially during the 'mahurat' period beginning afternoon and lasting till early evening.

The festival is celebrated in North-West India, including Maharashtra, Rajasthan and Gujarat.