MUMBAI: Gold prices in India, one of the world's leading consumers, climbed on May 28 in line with firm global markets but the rise depressed physical demand just ahead of a lean season.
The most-active June delivery on the Multi Commodity Exchange (MCX) was up 0.24 per cent at Rs. 28,995 by 2:16 p.m.
"We are heading towards seasonally weak demand period," said Babu Alapatt, managing director at retailer Alapatt Gold Pvt Ltd in Kerala. "The wedding season is coming to an end and the monsoon is approaching."
Demand usually drops between June and mid-August when there are no major festivals and marriages. Farmers will also be busy with planting during the rainy season.
"Volatility in prices is also deterring people from purchases," Alapatt said.
Global gold rose on Monday, tracking a firm euro, as fears of a messy Greek exit from the euro zone receded slightly after opinion polls showed pro-bailout conservatives in the lead.
The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, was steady around 55.3350 to the dollar.