Gold buying weak as jewellers' strike extended

Gold buying in the country, the world's biggest buyer of the yellow metal, was weak, as jewellers' strike extended to its twelfth day on Wednesday.

"Business is very dull, there have been no imports as well," said a dealer at a private bank. Jewellers have been protesting from March 17 the import and excise duties on gold.

Finance minister Pranab Mukherjee had agreed in parliament to examine jewellers' demand for removal of excise duty on unbranded jewellery, but won't reduce import duty on gold and platinum.

"The strike is still on, we are trying to meet the finance minister either tomorrow or the day after," said Baccharaj Bamalwa, chairman of All India Gems & Jewellery Trade Federation.

The amount of pent-up demand when the stores reopen would be important to gauge the physical demand, which could put a floor to the gold prices, Sharps Pixley said in a note to clients.

India is the world's biggest consumer of the yellow metal, with an annual consumption of 900 tonnes. Shipments could fall by a third to 655 tonne in 2012 as import duties crimp demand, a Reuters poll found.