Gold Price Fluctuations in India 2015
According to India Ratings and Research, Gold Price in India may even dip to Rs 20500 per 10 grams. This is the lowest in nearly four years and experts say, this could be heading even lower. As a result of this, global prices of the precious metal could drop and stay in $900-1,050 range per ounce. Historically, Gold prices and the dollar index have a negative correlation.
Top Causes for Fall in Gold Price
- A Weak trend in global markets
- Strong US economic data & Stronger dollar Rates
- Dollar’s rise against major currencies
- Indian Rupee’s resilience
- Weak global price of Gold
- Normal gold demand in India
Falling Gold Price is a Challenge
China and India have half of the total world demand for gold. When consumer demand in India rose 15 per cent, the demand declined 8 per cent in China. Falling gold price is a great challenge for banks and non-bank financial companies or NBFCs. All these companies are lend heavily against gold.
Now 99.9 purity gold price is Rs 25,035 per ten grams in Mumbai. Lenders are apprehensive and gold shop owners are appears happy because of increased sales. Various Jewelers and shop owners says that the, sales have doubled since the gold rates dropped.
Gold Price Fluctuations in India 2015 (Last 5 Years)
Should You Invest in Gold ?
Gold mines may no longer be able to produce as much, because the rate is very close to the cost of production. This may cause shortage for Jewelers. According to few other experts, this will be a short-term strategy and the price will increase soon. Fluctuation in gold rate affect business of gold as per reports by various media and this makes a greater difference.
Gold price is denominated in dollars. when the gold price goes up dollar rate goes down. Increased dollar rate indicating stability in the global economy. Because of falling Gold price, Lenders have initiated various precautionary measures to protect their assets. Banks intimated customers to pay some amount towards principle.