After demonetisation, the gold prices hiked and touched the one month high as there was no demand due to demonetisation. During demonetisation fifty days period people had a shortage of money so there was no demand but because of wedding season, demand is slowly picking up in the market.
Riding on improvement in demand and declining rupee, gold prices in India have hit a one-month high. The price of the yellow metal was hovering around Rs 28,800 per 10 grams for 24 carats, as against around Rs 27,000 per 10 grams a month back.
Bachhraj Bamalwa, director, Nemichand Bamalwa and sons said, “Demand is slowly p picking up in domestic market because of wedding season. In November there was no demand due to demonetisation. Also rupee has weakened against dollar by almost 90 paise in the last one month.”
He also added that in the international market there is not much activity since December's third week as most of the people are on annual leave during this time.
--with agency inputs