MUMBAI: Gold demand picked up on Tuesday, the day after Akshaya Tritiya, as traders replenished stocks for weddings taking advantage of lower prices, dealers said.
"There are enquiries and traders are filling their advanced orders," said Pinakin Vyas, chief manager-treasury with IndusInd Bank in Mumbai.
The most traded June contract was 0.63 percent lower at 14,617 rupees per 10 grams at 1:55 p.m., tracking weakness overseas.
However, dealers said a weak rupee, which makes the dollar quoted asset expensive locally, restricted the downside.
The Indian rupee fell for a second consecutive day on Tuesday, mirroring a broad slide in Asian currencies on worries about the swine flu outbreak.
Traders and dealers said their festival sales were down 20-40 percent as high prices curbed consumer's spending power.
"Sales were there but not on expected lines," said Harshad Ajmera, proprietor with Kolkata-based JJ Gold House.
"Pricing was the main hurdle in Akshaya Tritiya sales," said a dealer with a state-run bank. "It was definitely bad than last Akshaya Tritiya."
Dealers said a further fall in prices could rekindle wedding buying interest.
"A fall to $885 (an ounce) could revive demand further," said the dealer.
India's wedding season would continue till next month.
