The gold prices in the international markets haven't really gone up- in fact they are at 15% Lower than their highs , but because of the currency depreciation in Indian rupee the prices of gold have been going up in india.
The Indian rupee is now at 52.5 rupees to a dollar again around a 15% depreciation which coincides to the reduction in prices in gold.
The Indian rupee is set to weaken even further because of the issues facing the Indian economy. Some say that it may go to 56 to a dollar.
Uncertainties in the world economy also has some pundits talking about gold going to $2000/Gm.
Combining the two effects , gold is set to touch new highs in india quite soon. it's a multiplier effect coming into play.
Me thinks it's a good time for investing in the yellow metal albeit for a short term.
Catch the trend
Simplefinancialsense
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