New Delhi: There seems to be no respite for consumers in the near-term as gold prices are expected to rule above Rs15,000 per 10 gram till September as analysts pare bets for further weakness in the rupee.
“Gold prices were ruling higher over the past few weeks due to a weak rupee that makes the dollar-quoted yellow metal expensive. However, the weakness in the rupee is expected to continue in the near-term, keeping gold prices at above Rs 15,000 per 10 gram till September,” Religare Commodities Metals and Energy Incharge Somnath Dey said.
Rupee value may depreciate further to Rs55 against the US dollar in the next two months from the current level of Rs51.72, keeping gold not below Rs15,000 per 10 gram, he said.
Presently, gold is quoting at Rs15,450 per 10 gram. It made an high of Rs15,750 per 10 gram on 19 February.
Noting that rupee is behaving more like Korean currency, another analyst said revaluation of global currencies like euro and Pound sterling against the US dollar is building pressure on the Indian rupee.
Citing reasons for rupee weakness, D K Joshi, Principal Economist at domestic ratings agency Crisil, said, “Rupee value is getting depreciated these days due to a stronger dollar, which is strengthening following a rise in demand for the US currency globally. Besides, lower Indian exports and sluggish capital inflow have extended pressure on the rupee”.