Drop in gold prices raises hopes of demand revival
“TS Kalyanaraman, chairman and managing director, Kalyan Jewellers said that rise in gold prices has had an impact the consumer sentiments and gold buying trends. ‘But we believe that these sentiments are short-term and we are expecting the demand to pick up soon,’ he added.”
USAGOLD note: Year to date, gold is up 19.65% in rupee terms. Simultaneously, the rupee is down about 4% against the dollar. If investors believe that the rupee is headed still lower, it stands to reason that gold demand might remain steady through the festive season even if prices are rising.
Repost from 9-20-2019