Some deferred gold-buying finally comes around in India

"However, now that the government does not seem to be in a mood to relax the restrictive measures anytime soon, consumers are looking out for bargains, because of the upcoming festival and marriage season,'' he said.

Moreover, traders said that a breakout from the low volatility in the gold market is likely to result in a sharp move in gold prices. A breakout above $1,360 would be a positive signal and result in an uptrend towards the $1,450 era, said analysts, adding that people would prefer to buy before that.

Analysts tracking the price movement said, "During the last two years, there have been two pauses in the downward trend. We are now going through the second, with gold price steady for the past year. Another directional move is very likely to take place in the coming months.''

Some deferred gold-buying finally comes around in India