MUMBAI (Commodity Online): Even though the festival season has kicked in, Indians are still shying away from bullion market.

India’s Gold buying remained weak for a third session on Wednesday, as prices traded near the record high, deterring buyers from placing new orders.

Gold futures was trading 0.03 per cent lower at Rs 19,128 per 10 grams on Wednesday, after hitting a high of Rs 19,142, nearing the previous record high of Rs 19,198 struck on June 8.

According to analysts, there has been a rise of $15 in prices since yesterday, any fall of about $10 could bring in small-ticket buyers.

India, the largest consumer of yellow metal, is under a festive season, and celebrations will extend till Dhanteras, the single largest gold buying day.

Gold imports by India this year may exceed 2009 level as near-record prices fail to deter buyers and festivals drive demand in the world’s biggest consumer of bullion.

Purchases may total 600-625 tonnes, compared with an estimated 480-485 tonnes bought last year. India’s bullion demand almost doubled in the first half of the year even as prices reached a record in June as investors sought a haven and higher salaries spurred jewellery sales. Demand in the second half is likely to be at least 25 per cent higher from a year earlier.

Gold investment demand in India may rise 25-30 per cent in the second half of 2010 from a year ago as a shift in preferences from jewellery to exchange-traded funds (ETF), bars and coins gathers pace.

Indians traditionally buy Gold jewellery, which is the most common gift during religious events and an essential wedding present, but buyers are becoming increasingly aware of the benefits of holding gold in other forms.

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