Jewellers stocked gold ahead of the general election results as prices of the precious metal continued to fall owing to strengthening of the rupee amid expectations that the BJP-led NDA government would return to power.
Bullion dealers said there was demand from investors as well, at a price of Rs 31,600 per 10 gm, in anticipation of an increase in prices in the international market in the second half of 2019. Post exit polls, the market has seen some movement, as jewellers have been buying gold due to no premium costs. investors too seem to be taking a keen interest in gold.
Bullion dealers stocked up on gold thanks to falling prices despite exit polls predicting a clean sweep victory for BJP. Experts reveal that price of gold is a function of US dollar and Indian rupee. a stable government with a clear policy will result in the appreciation of rupee against dollar. The rupee strengthened against the US dollar for the third consecutive session on Wednesday after the release of the exit poll results on Sunday.