By Manasee S Gokhale
Gold demand seen improving after the wedding season. Or is it the slowing down of prices that seem to be ruling gold demand. It seems so unfortunate that international prices have been pushed lower and Indian prices have now followed the same. But alas, after the wedding season is over.
Well, this could still be an opportunity for those who have weddings planned for the second wedding season on the Hindu calendar which begins in October and continues till mid January.
International prices have fallen because the global economy seems to have started showing signs of recovery, but there are serious concerns about the same. One does not know if this is temporary or will last longer and pull everyone out of recession.
The Indian rupee fell most in more than a week as concern on global economic recovery is stalling demand for emerging-market assets. The currency dropped to a one-month low against the dollar on speculation overseas investors will cut their holdings of local shares.
They sold more Indian equities than they bought for the first time in eight days on June 15.
The rupee fell 0.08 percent to 48.22 per dollar. The currency is the worst performer this month among the 10 most-traded Asian currencies outside of Japan with a 2.2 percent loss.
Gold changed little on Thursday and also headed for the longest weekly decline against the dollar, as the greenback rallied eroding demand for the metal as a safe have investment.
The SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, declared the assets held by them have remained unchanged at 1,132.15 metric tonnes since June 05, 2009. This has been the longest period without any rise or fall since October 27 to November 11, last year.
Manasee S Gokhale is an economist withe the National Commodity and Derivatives Exchange, India.
