Gold bounches back

While stock market is taken a beating on Friday, gold seems to bounced back in the last few days and it was trading Rs 2946 per gram (22 carat) on Sat 17th Aug.

Apart from hike in gold prices in world market, following other factor seems to drive prices up,

•  Depreciating INR.
•  Import restriction and higher duty. 
• Condition of world and  Indian economy at this point of time.
•  Last but not the least the start of festive season in India.

Next to petroleum product, gold import is the highest drainer of foreign exchange in India. Added to this India is top consumer for gold. Further, its never going to easy for Indians to move away from attractiveness gold .