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Markets

Slumping rupee pushes up gold prices in India

Monetary authorities fret that year-end demand could put more pressure on rupee

Although gold prices are down internationally, compared with the end of 2017, they are higher in India, the world's second-largest consumer, due to a sharp fall in the rupee.   © Reuters

SINGAPORE -- India's weakening rupee is pushing up the price of gold in local currency terms, raising costs for world's second-largest consumer of the precious metal and putting the currency under pressure.

According to GFMS, a Thomson Reuters research unit, India's gold imports for September slid 14% by volume on the year. Demand typically surges in India toward the end of the year, and market watchers are focused on how that demand will affect the value of the rupee.

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