Gold demand reduces in India as price rises 1 per cent

Even though the wedding season is far off as monsoon is about to begin in India, the gold prices have risen by 1 percent. The most-active gold for June delivery on the Multi Commodity Exchange (MCX) was up 1.09 percent at 28,266 rupees by 5:55 p.m. The contract on Wednesday fell to 27,855 rupees - its lowest since April 4. The rupee plays an important role in determining the landed cost of the gold. The rupee fell to a new record low against the dollar on Thursday. Global gold rose almost 1 percent on Thursday, bouncing off a 4-1/2 month low, as weaker prices attracted new physical buyers, but gains were likely to be limited. With the volatility of the rupee versus the dollar, keep a close watch on the gold prices if you have a wedding coming up soon or are interested in investing in gold.