Gold price in India drops sharply: investors rush to buy

The price of Gold in India on Friday dropped more than 300 rupees per 100 grams on the benchmark December contract on MXC.

The fall in gold price is another sign of troubled economy’s as the gold tracked the weakening overseas markets.

However the demand for India’s gold has shot up as retail buyers rushed in to buy the gold at bargain prices according to the dealers.

The demand of gold has broken improved great ahead of Dhanteras and Diwali, and according to Ashwin Choksi partner at Jamnadas M. Choksi Jewelers prices have broken the psychological level of 12,000 rupees.

So far in October gold in India has lost more than 1,500 rupees. Overseas gold fell 4 percent to its weakest level since September 2007.

Dealers of large private banks in India have said that if the gold falls below 10,000 rupees, then it would be almost impossible to meet the demand.

Source: in.reuters