Indian Gold Buying Picks Up On Stronger Rupee

According to a report by the Economic Times, Indian gold buying rebounded because a strengthening of the rupee made prices cheaper in Indian terms.

"There is good buying at current levels as the dollar/rupee has fallen, which us helping demand," said a dealer with a bullion-dealing state-run bank in Mumbai....

"Last week was good, we did good volumes from 27th onwards," said another dealer with a private bank. "All our orders got filled on Friday itself and by evening there should be a lot of advance orders," said the state-run bank dealer.

Also having an influence is the need to stock up for the Raksha Bandhan festival on the 24th of this month, and other festivals until November.