India’s gold demand slid on Monday after a marginal rise in the previous session amid weak rupee.
"On Friday, we witnessed good volumes and did deals in the range of $1,130-1,140 an ounce, but people are waiting today as the rupee has depreciated," said Pinakin Vyas, assistant VP, treasury at the IndusInd Bank.
The Indian rupee plunged after following a more than 1% slide in the domestic share market. The investors were also sentimental after fraud charges against Goldman Sachs that contributed the current situation.
India is an important consumer of gold and it imports almost all of its requirements from abroad. The cost of this metal is decided by the local currency.
According to the last report on the prices of this yellow metal, International gold was trading at $1,127.95/1,128.95 at 1:51 p.m. as compared to the previous rate of $1,136.45/1,138.45 an ounce. The gold price stood at a 10-day low of $1,129.65/ounce on Friday.
Gold prices also fell in Europe over the period after Goldman Sachs was charged with fraud by the U.S. regulators.
