Gold rates in Indian cities have seen a steady rise, as global gold prices have trended higher and the rupee has also been weakening against the US Dollar.
Gold rates in Bangalore, which had been retailing at Rs 42,250 per 10 grams for 22 grams have on April 2 have now reached Rs 43,400 per 10 grams in the city.
Similarly, gold rates in Chennai, which were around Rs 42,670 per 10 grams for 22 grams on April 2, have now risen to Rs 43,750 per 10 grams.
Weakness in rupee makes gold costlier
The rupee weakened significantly last week, which pushed gold prices higher. Since India imports bulk of its gold requirements any weakness in the Indian rupee can have a bearing on gold rates in India. Apart from this, US bond yields have softened a bit, which pushed international gold prices a tad bit higher.
Should bond yields in the US trend higher, we could see gold prices in the international markets go higher and this may lead to higher prices of gold in India.
For consumers, it would be a good idea to buy the precious metal on dips, while for investors too that strategy may hold good for the long-term.
Clearly, gold has begun the second quarter of 2021 on a good note and we may see a continued uptick in prices in the coming days.