Gold demand improves as prices ease

A woman tries on a gold necklace and earrings at Vivaha '06", a travelling wedding exhibition, in Kolkata August 7, 2006. India's gold demand improved on Friday as prices softened, dealers said. REUTERS/Jayanta Shaw/Files

MUMBAI (Reuters) - India's gold demand improved on Friday as prices softened, dealers said.

"The demand is picking up as prices have come down a bit," said Ashok Gupta of Delhi-based Ganapati Traders.

There could be some more improvement in demand due to the marriage season, he said.

Dealers said many of their clients were choosing to exchange scrap gold to buy new items of jewellery.

"Normally one has a limited budget for gold jewellery and if the prices sustain at higher levels the quantity of buying comes down," said Ketan Shroff, director of Pushpak Bullions Pvt Ltd.

India's busiest festival season is already over, but the ongoing weddings season is expected to be a big trigger for gold sales, they said.