High prices dampen gold buying on Akshaya Tritiya

New Delhi: 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 Rs 29,100 per 10 gm, traders said.

In western Indian state Gujarat, too, sales were lower by 25-30 per cent 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 Rs 7,000 to Rs 29,100 per 10 gm since last year`s Akshaya Tritiya, when prices were ruling at Rs 22,120 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.