Gold prices remain high in India as rupee weakens, coronavirus strains global trade

By

Isabelle Crossley

Published
Feb 21, 2020

Gold prices in India remain high as the rupee weakens, imports are down, and global gold prices reached an all-time high on Thursday. Prices are also expected to remain high for the foreseeable future.

 
Gold prices (24 carat) in Chennai reached Rs 43,050 ($598.48) for 10 grams in Chennai on Thursday and prices in Mumbai and Delhi were also high at around Rs 42,900, TNN reported. Global gold prices also soared on February 20 to reach $1,612 for an ounce as the coronavirus outbreak in China continues to affect global trade. As the Coronavirus is showing no signs of abating, gold prices are expected to continue to remain high as the precious metal is seen as a secure investment.
 
The rupee remains weak and, according to the Gem and Jewellery Export Promotion Council’s preliminary data released on its website on Tuesday, India’s gold imports were down by 6.29% year-on-year across the sector to total $20.31 billion in the first ten months of the 2020 financial year, compared to $26.57 billion in the same time period a year earlier. 

As the spring wedding season begins, high gold prices could affect consumer purchasing. The jewellery industry is also facing a slowdown in its diamond sector, further fuelled by reduced diamond exports to China amid the coronavirus, so jewellers are hoping the wedding season will add a boost to the industry.