Indian gold demand lags

MUMBAI/BENGALURU, Jan 20 (Reuters): Gold demand turned fragile this week in India as local prices jumped to their highest level in 2-1/2-years, while traders in major buying centres in Asia pinned hopes on purchases ahead of the approaching Lunar New Year.

Local gold prices in India, world's second-largest gold consumer, touched their highest since July 2016 this week.

"Prices are just moving higher and higher. Buyers are waiting for a correction in prices and the annual budget as there is speculation of a duty cut," said a Mumbai-based dealer with a bullion importing bank.

Prime Minister Narendra Modi's government will present the budget on Feb. 1.