I studied economics for several years in school and college. One of the basic things I read was that if the price of a product is high then its demand decreases. This is the thing that has happened for gold in India. Indian people especially, Indian women are crazy for gold. In Indian weddings, I think the largest amount of expense is on buying gold. So, gold traders are not happy at this moment.
Reuters reported:
Indian gold demand remained weak on Friday due to high prices and on absence of any festivals, dealers said.
"People are now very cautious when they come to buy gold jewellery," said Ashwin Choksi, partner, Jamnadas M. Choksi Jewellers.
Well, there is little that the traders or the consumers can do at this moment. The price of gold is high worldwide. On the other hand, ordinary people in India are now fighting against bad inflation rate and are too occupied with the price increase in food items. They cannot think of gold at this moment.
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