Gold traders in India are preparing for a deluge of customers eager to buy the yellow metal as this year's annual wedding and festival season is expected to further boost sales of gold jewelry around the country.

On Tuesday, the Rupee gold price struck an all-time high as the Indian currency fell to its lowest level against the US Dollar since March 2009.

The Rupee fell 1.6 per cent against the Dollar in less than two hours during Tuesday's Asian trading. Although international dollar gold prices likewise fell in Tuesday's Asian session, it sent the Rupee gold price to go higher.

At one point the spot market gold price in Rupees hit Rs 29,295 per 10 grams, or approximately $1,790 per ounce at Tuesday's exchange rate.

Traders expect the ongoing wedding season in the country to help maintain demand for the precious metal.

The country's annual wedding and festival season has boosted prices every year since 2002, sealing India as the world's biggest buyer of the yellow bullion. Some 10 million marriages take place in India every year on average, according to a report by the World Gold Council.

India's wedding season runs from late September to December. Over the past decade alone, gold rose by an average of 10.2 per cent from September through to December, traders said.

"Despite the all-time high price, weddings are a saving grace,'' bullion retailer Wasimbhai Kher told MineWeb.

He said these seasons force Indians to buy smaller denomination coins and ornaments for gifting purposes.

"Nothing holds more value in an Indian household than gold," he said.

Apart from weddings, Indian jewellers also buy gold for the Hindu festival of Diwali, or the Festival of Lights.

The jewelry market accounts for about three quarters of the gold sold each year.

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Gold Buying Reaches All Time High in India