INDIA April 20 2017 12:15 PM
NEW YORK (Scrap Register): The effect of climbing gold prices is diminished by rising rupee in India, which is creating opportunities for gold buyers who are looking for a good deal, this according to World Gold Council's managing director for India, Somasundaram PR.
Gold prices in India advanced 12% since January, while the rupee has gained almost 6% during the same period. This development has cushioned the sharp rise in gold for customers, said Somasundaram.
“This is a fantastic opportunity. It’s like Indian gold is available at a discount of 6%,” Business Standard quoted Somasundaram as saying. “People are definitely keen and the first quarter has been good.”
Plus, if the rupee continues to appreciate, as forecasts suggest, future gold discount will be even greater, he added.
Somasundaram noted that the gold market is now witnessing a recovery in India, with demand rising in anticipation of the upcoming Akshaya Tritiya festival on April 28, which is known for gold buying.
One problem, however, remains — the quantity of gold being bought. Many businesses and customers are staying away from buying large quantities of gold, according to the media report.
“Uncertainty over the goods and services tax rates for gold and restrictions on cash transactions are expected to affect the gold demand during this year, with forecasts projecting 650-750 tonnes — a subdued total for the second consecutive year,” Somasundaram said.