India waiting for price fall 'before further gold investment'

Gold dealers in India are reported to be waiting for a fall in gold prices before returning to strong investment in the metal.

Reuters claims that Indian gold investors have refrained from further investment as gold prices approached record levels, with one dealer suggesting that if prices continue to rise, investment will not be forthcoming.

"The demand is quite dull as prices are going up ... it will remain like this if prices won't come down," the dealer, from a large bank, told Reuters.

Adding to the pressures for Indian investors is the performance of the rupee, which is currently nearing a six-month low.

A fall in local stocks could lead to the disappearance of foreign investment through a move to "repatriate funds".

Callum Henderson, Singapore-based head of global currency strategy at Standard Chartered, told Bloomberg that foreign investors have been selling Indian equities, forcing the rupee to fall.

Looking to Buy Gold today? For direct access to live Gold Market prices – and to save up to 80% compared with coin dealers' fees – click through to BullionVault now...

Buy gold at the lowest prices in the safest vaults today...

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News, RSS links are shown there.