Demand for gold in India, the world's biggest market, has risen sharply with the wedding season in full swing.

"The current demand is the best I have seen in the past one year," Ranjit Rathod, a bullion trader based in Chennai, said on Monday.

He said retail buying was likely to rise in the coming weeks.

Rathod said gold imports into Madras had risen to about 300 kg per day, against a normal of 150 to 175 kg. Other importing centres such as the western city of Ahmedabad also reported a rise in overseas purchases.

India imports nearly 70 per cent of its annual consumption of more than 800 tonne, making it the world's biggest gold market with one-fifth of the global demand.

Demand for gold jewellery that forms nearly 85 per cent of the domestic sales rises during the wedding season, which begins in January and runs through May as parents and relatives customarily gift the metal to brides for financial security.

Traders said consumers had been placing advance orders with jewellers to ensure timely deliveries due to many auspicious days for Hindu weddings in May.

"We are hoping to see a good demand till May-end, provided gold prices stay in a range of $320-$330 an ounce," said a bullion dealer with an international bank.

Spot gold was quoted at $328.50/329.50 an ounce at 0720 GMT on Monday, up from $326.35/327.75 at Tokyo's close on Friday. It is down about 15 per cent from more than six-year highs in early February.

Domestic prices follow global trends due to the country's heavy dependence on imports.

Jewellers had been building gold inventories, which had fallen due to poor purchases in the past three months following firm prices, traders said.

Rural demand is also expected to rise with the start of summer harvests, they said.

About 70 per cent of India's more than a billion people live in rural farmlands and they traditionally invest in gold ornaments after harvests.