The rupee on Friday recovered from its all-time low of 69.09 per dollar it had touched on Thursday but continued to trade weak.
Here’s how a weakening rupee-dollar will impact gold, crude oil and base metals:
Gold prices declined sharply in dollar terms this year on account of strength in the dollar index. However, in euro and pound terms, gold prices have changed a little. The tight monetary policy of the Federal Reserve poses a strong challenge to the yellow metal.
We have been seeing selling pressure in the SPDR and iShares Gold Trust exchange traded fund despite trade war-related concerns in global markets. On the other hand, the rupee has depreciated to an all-time low-level today.
Due to the rupee depreciation, prices may not fall drastically in the domestic market. If India sees a normal monsoon this year, it might lead to a rise in the rural demand ahead of the festival season. Read More
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