Gold & Indian Rupee

As what the graph says, its very clear to understand. A simple graph can just explain the whole situation. But I will just touch a small part on what is exactly happening here. India is the biggest consumer of bullion in the world, they buy those metals for weddings and festivals.

On the 17th of January, the government of India put up an import duty on gold bullion to 2% on its value from the old flat rate and also 6% on the silver value. These changes has pushed both of the metal prices up!

But the overall strength of the rupee is still keeping prices at a reasonable level for buyers, keeping both gold and silver demand high in the nation. Some metal dealers however believe that if the gold price rises to 30,000 rupees, the demand will fall back.