Gold demand in India rose this week due to a festival and as local prices adjusted to an appreciating rupee, while higher prices kept a check on demand elsewhere in Asia.

The Gudi Padwa festival, also known as Ugadi in some parts of the country, was held earlier this week. Buying gold during festivals is considered auspicious in the world's second-biggest market.

The demand is likely to remain firm next month due to another festival, Akshaya Tritiya, and the start of the wedding season, Kothari said.