| The great Indian gold rush witnessed during April and early May has started to taper off. Physical demand has declined by at least 15% in the last one week and bullion dealers and jewellers say that they do not see an immediate recovery in demand as the crop planting season will kick off shortly, which will keep the rural buyers away.
This year, rural India has accounted for nearly 65% of the demand. A weak rupee will make gold imports costlier, which will further affect the consumption pattern. The rupee has weakened against dollar and is now hovering around Rs 55.60. The landed price of gold depends on the exchange rate.........................................Full Article: Source
|