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The auspicious period, post-Sankranti, also failed to lure buyers into the market as there is no demand for gold in the commercial capital.
The demand has fallen to 50-100 kgs per day from 1-2 tonnes per day in August 2008 due to a lack of buying interest and higher prices, Bombay Bullion Association (BBA)'s President Suresh Hundia told PTI here.
Demand will pick up only when prices come down to a level of Rs 12,200 per 10 grams, Hundia said.
India is a market well known for its price sensitivity. India's gold buyers just hate increasing their holdings when the price keeps going up," bullion analyst, Amit Zaveri, said.
High prices plus high volatility cut Indian gold buying 65 per cent last year, Zaveri said.
The lower demand has cast its shadow over imports.
India imports more than two-thirds of its annual demand of about 700 tonnes a year. In December, imports fell to as low as 3.7 tonnes as high prices restrained traders from purchases even during Christmas and New Year festivals.
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