Weakening Rupee could hurt India's upcoming festival Gold demand
Global Scrap News | 2013-08-29 13:24:56
The Indian rupee is in a freefall, which makes gold more expensive for buyers in the country in their own currency, according to analysts.
By Paul Ploumis
MUMBAI (Scrap Monster): The Indian rupee is in a freefall, which makes gold more expensive for buyers in the country in their own currency, according to analysts.
"In India, the plunge of the rupee by close to 10% in August has pushed up gold prices, which went from 24,830 rupees per 10 gram(s) on 28 June to a high of 33,824 on 27 August," said Sharps Pixley.
"The surge in gold prices, however, will likely hamper the upcoming festival gold jewelry demand."
The U.S. dollar has reaches as strong as 68.93 on Wednesday, a fresh record high against the Indian currency.
“The decline in the rupee will almost certainly raise fresh doubts about Indian gold demand going into the wedding season, especially now that the impact of a weaker currency is being magnified by sharply higher gold prices," said Edward Meir, commodities consultant with INTL FCStone.
