RTRS: India spot gold prices fall in absence of demand
MUMBAI (Reuters) - India's spot gold prices fell on Tuesday as higher prices continued to keep buyers away, though if the trend continues this might provide an opportunity for some bargain buying, dealers said.
"Prices are now in the range of 18,250 -- not attractive but there could be some buying if falls continue...17,500 may attract some buyers," said a dealer with a private bank.
Indian prices touched fresh highs in the previous session tracking overseas markets, where the yellow metal has become the flavour of the season as parts of Europe battle an ongoing debt crisis, analysts said.
India's price-sensitive customers, who drive the global gold demand, stayed away from gold buying festival of Akshaya Tritiya on Sunday, an indication demand may remain subdued through the rest of the year if global prices continue to stay firm.
International gold edged up on Tuesday but held around $20 below a lifetime high struck last week, while another increase in holdings in the world's largest gold-backed ETF showed investors were keeping faith with the metal.
The festival, which is more popular in south India, is the second-largest gold buying day in the world's largest market for gold.
(Reporting by Sourav Mishra; editing by Sunil Nair)