File photo of a shopkeeper arranging gold ornaments at his shop in Chennai April 11,... MUMBAI (Reuters) – Indian gold prices fell below a psychological mark on Friday, tracking foreign markets, leading to heavy sales and a shortage in supply, dealers said.

“There is very good demand from all those who had waited,” said Harshad Ajmera, proprietor of JJ Gold House, a large wholesaler in Kolkata. “Investors and jewellers, all are buying in bulk.”

Gold fell below 12,000 rupees per 10 grams for the first time in eight weeks as foreign markets slid on a stronger dollar against the euro after the European Central Bank’s caution on the growth outlook.

Gold generally has an inverse relation with the dollar as the two compete for funds.

Retailers said demand had picked up even before the festivals had kicked in and the break of the psychological mark would bring more consumers to shops.

“Marriage-related buying has already started,” said Princeson Jose, director of Prince Jewellery in Chennai.

Many Hindu marriages are likely to be held between September and November in stretches of auspicious periods.

“We will have a very good weekend,” said Rahul Gupta, director of P P Jewellers in New Delhi.

A dealer in a large bank said supplies were short with delays of several days for delivery that had spiked up premiums.

Following was the price of .995 gold in the spot market in rupees per 10 grams at 1:20 p.m. :

Bank Friday Thursday

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