Gold and Indian Rupee has a very unique correlation, In this article, I will explain how the Indian Rupee movement impacts Gold prices. Traders have a habit of buying gold whenever there is inflation in the economy, so in other words, Gold act as an inflation hedge for many big traders. So when you see inflation in Indian economy then surely there will be buying in Gold.
Another instance of buy into gold is when Indian rupee depreciates i.e. when it loses its value. Everything in the country gets costly and so is the case with gold. Hence, gold will become costly and so traders buy into gold for this reason. Other than these two factors, demand and supply also contributes to the prices of gold. Demand for gold generally increases in the festive season of Diwali and on the beginning of marriage season.
Example: If the international gold price is going up; in India if INR (Rupee) depreciates against us dollar then, we are going to see the gold price quoted in Indian rupees will go higher by higher percentage when compared to international prices.
Subhash rai says
Sir i want your view on silver.
Karan Jain says
Good explanation Bhaveek, I have been reading your articles for about 6 -7 months. I am stock trader but also trade commodities like crude, copper, gold and silver
sir i am long on usd/inr yesterday it was at 55. What is next week target?
harshad patel says
Bhaveek bhai your article for nifty future and nifty options are not coming. Kya baat hai bhai, eagerly waiting for your trading ideas on nifty futures.
harshad patel says
Bhaveek bhai is there any stock for short term delivery? will appreciate if you share a midcap stock.
Kshitij Humane says
Sir, recently demand for gold in Indian has come down so is it the reason for recent fall in gold and silver prices? What do you think??
Bhaveek, I am a regular reader of your blog I have also done your technical analysis course. It has improved my trading analysis. But now I am planning an investment in forex and would like to try you forex accounts management service. How can we proceed further? Kindly call or mail me the details.
Sir, I want only nifty options tips by sms. What is your charge for 1 month do you give any trial. I also have shares in delivery, can you help me, which shares I should buy.
SURENDRA PUROHIT says
I BULL ON USD @55.02 WHAT LEVEL WHERE WE BOOK PROFIT
usdinr 54.20 soon……
Vidushi Goel says
Can anybody tell me, Why IT sector has an inverse effect on whole market?
Bhaveek Patel says
Because rupee is getting stronger and all IT companies revenues comes in USD. so they get less rupees for every USD.