When prices of gold fell in India to Rs 27,520 (AU$503.50) per ten grammes, a gold-buying frenzy ensued, giving testament that India prefers buying the safe haven yellow metal gold more on religious holidays.

On Monday, India commemorated its Askshaya Tritiya day, considered to be an auspicious day for buying gold and silver.

Despite government curbs on shipment, India's gold imports were expected to exceed the 2012 level by 900 tonnes, according to the World Gold Council (WGC). Already, gold sales during Akshaya Tritiya have grown by 20 per cent versus a year ago, according to Haresh Soni, chairman of the All India Gems & Jewellery Trade Federation.

"Retail consumers are buying especially today keeping the significance of the festival. Much of the gold buying took place in the last 15 days when prices fell significantly," Ram Avatar Verma, Bullion and Jewellery Association President, told PTI.

From among all the 365 days in an Indian calendar, Akshaya Tritiya is considered the best day to buy and invest into gold purchase acquisitions. Many of the country's more than 900 million Hindus buy the safe haven yellow metal to make it as part of the bridal trousseau or gift it to relatives.

Prithviraj Kothari, managing director of Riddisiddhi Bullions Ltd., and a former president of the Bombay Bullion Association, forecast sales of the precious gold could grow 50 per cent to 30 tonnes during this year's festival.

"People buy gold on Akshaya Tritiya as the belief is that anything bought on the day will only multiply," he told BusinessWeek.

The world's largest consumer of the precious metal, India imported 860 tonnes of gold versus an actual demand which stood at 864 tonnes in the same year, the WGC said.

"Looking at the trend in the initial 4-5 months of this year, we expect gold demand and imports to be higher than the last year at around 900 tonnes," Somasundaram PR, WGC India managing director, said.