Why gold prices are so high in India

Source : BUSINESS_STANDARD
By : Business Standard
Last Updated: Sun, Jun 17, 2012 05:29 hrs
Salesgirl is reflected in a mirror inside a gold jewellery showroom on occasion of Akshaya Tritiya in Kochi

Gold has given reasonable returns in the past year, despite talks of the yellow metal losing its safe-haven status and being replaced by the dollar. Internationally, gold prices have increased by nine per cent since July 2011.

However, in the Indian market, it has risen 38.7 per cent, as the rupee has fallen over 25 per cent and the import duty on gold has gone up by three percentage points. The falling rupee and the high import duty have kept gold prices high in India

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