• Trading Account
  • Downloads
  • Nifty Options OI
    • Nifty Max Pain Chart
    • Nifty Option Change in OI Chart
    • Nifty Put Call Ratio
    • Nifty Option Total Change in OI
    • Nifty Trend Finder
  • BankNifty Option OI
  • About Us
  • Learn Technical Analysis
    • Advance Option Trading Course

OurNifty.com

A Indian Stock Market Blog

  • Forex
  • Gold
  • Intraday Stocks
  • Midcap Stocks
  • Multibagger
  • Nifty
  • Nifty Option
  • NSE
  • Amibroker

Understanding Correlation between Indian Rupee and Gold prices

By Bhaveek Patel 12 Comments

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.

Share5
Tweet
Pin
5 Shares

You Should Read This:

  1. Gold Trading at Life Time High on 19 July 2011, Buy Above 1597 for Target 1616 Yesterday Gold has made its life time high by moving above the $ 1600 per troy ounce. Now we are extremely bullish on gold in near term and taking a looking at the daily charts...
  2. Indian Rupee Depreciating, Hinting Short Selling in Nifty Futures Ahead INR (Indian Rupee) has been depreciating from last 2 quarters, from 46 to 54 level IT sector was enjoying this gain, but Oil and Gas companies were suffering and were unable to pass the extra...
  3. Gold Technical Analysis for 18 July 2011, Gold is trading at all time high levels so buy above 1589 Looking at the daily charts we found that gold has resumed its long term bullish rally and this may continue as long as there is clear view from the Italian economy. As gold is always...
  4. Trading Gold with Technical Analysis, How should I trade Gold today, Buy or Sell Gold has made new all time high today morning and this move was a clear sign that gold has become the safe heaven for the uncertain stock markets. Even the news that S&P has downgraded...
  5. Gold will See a Bubble Only Above 2350, till then we are looking for Buying Positions in Gold Gold may move sideways for sometime now and but we are still sure that asset bubble is still far away at this point of time. So still it attractive from the buyers point of view,...

Category: Gold Tags: Buy Gold/ Gold Analysis/ Indian Rupee

About Bhaveek Patel

Bhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.

Comments

  1. Subhash rai says

    Sir i want your view on silver.

    Reply
  2. 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

    Reply
  3. sujith says

    sir i am long on usd/inr yesterday it was at 55. What is next week target?

    Reply
  4. 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.
    Regards,
    Harshad Patel

    Reply
  5. harshad patel says

    Bhaveek bhai is there any stock for short term delivery? will appreciate if you share a midcap stock.

    Reply
  6. 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??

    Reply
  7. paul says

    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.

    Reply
  8. ask says

    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.

    Reply
  9. SURENDRA PUROHIT says

    I BULL ON USD @55.02 WHAT LEVEL WHERE WE BOOK PROFIT

    Reply
  10. pranil says

    usdinr 54.20 soon……

    Reply
  11. Vidushi Goel says

    Can anybody tell me, Why IT sector has an inverse effect on whole market?

    Reply
    • Bhaveek Patel says

      Because rupee is getting stronger and all IT companies revenues comes in USD. so they get less rupees for every USD.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post: New year Giveaway: Participate to win Apple iPad 8th Gen
Next Post: Short term Stock Trade: Buy ABIRLANUVO on Pullback for target 1135

Advance Options Trading Course

options trading course

Lowest Brokerage Trading A/c

Lowest brokerage trading account opening in India

Learn Technical Analysis

technical analysis course

Recent Articles

  • ASX Penny Stocks List for 2023
  • 7 Ways to Boost Your Revenue
  • NYSE Penny Stocks List for 2023
  • Short On Cash? Here’s How You Can Manage Your Priority Spends
  • FREE Webinar on Option Chain Analysis
  • LSE Penny stocks list for trading in 2023 Should you buy?
  • BSE Penny Stocks List 2023

Popular Categories

Amibroker Finance Forex Gold Intraday Stocks IPO Midcap Stocks Multibagger NEWS Nifty Nifty Option NSE Short Term Stocks Technical Analysis

About Us | Contact Us | Privacy Policy | Disclaimer


Copyright © 2009 - 2023 OurNifty.com Trading ideas published here cannot be reproduced without permission from the author.
OurNifty is Powered by Wordpress and hosted on Digital Ocean