On Monday, the price of gold fell by as much as 3 per cent. Dealers said that the reason behind this fall is the weakening global markets. However, dealers expect some rise in the coming days due to the rising demand before the Akshaya Tritiya festival.

During the festival, which falls on May 16, Hindus buy precious metals, mostly gold. Every year, around the festival time, the demand for gold soars. Moreover, India is the largest consumer of the precious metal and thus a change in demand here causes the prices to change.

Dealers also say that after long time such heavy buying in gold has taken place. Some of them also believe that if the price falls below $1,180 then 200kgs. of additional buying can take place.

As per the data given by the Multi Commodity Exchange, gold was trading at Rs. 17,433 rupees per 10 grams. This level was reached after it touched the low-level of Rs. 17,358. Rise of 2.79 per cent in just one day.

Meanwhile, the price in the international market was at $1,189.75/1,190.55 an ounce. This is lower than $1,207.75/1,208.75. International prices guide the domestic demand.