TUESDAY morning at the Multi Commodity Exchange in Mumbai, the price of Gold Futures for August delivery rose 0.3% to hit new all-time record highs.
The August Gold Futures contract has now risen 2.5% in the last seven sessions, reports the Economic Times.
"Business has slumped as prices are very high," says Lokesh Kumar Agarwal, chairman of the Brijwasi Bullion and Jewellers dealership in Lucknow, speaking to local press.
"They are all waiting for dips below Rs 30,000."
"Buying is slow as prices are still high. People are waiting for correction," agrees Ketan Shroff, director of a gold wholesaler in Mumbai, Pushpak Bullion.
The reason why Gold Futures in India are reaching new heights is not because of increasing gold demand, but because of the Rupee currency's hard fall on the foreign exchange market.
Physical gold demand in India is seasonally low in early summer, and is likely to remain like that in the coming months according to analysts, due to the absence of "auspicious" festivals during the monsoon period.
Furthermore, the price of physical bullion and Gold Futures in the US Dollar has not hit new records since the start of September 2011. Since then, however, the Indian Rupee has nearly lost 20% of its worth against the US currency.
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