A sharp fall in gold prices is good news for gems and jewellery exporters who will be able to source yellow metal at lower rates and compete better in the global market.
After seeing the steepest ever fall of Rs 1,540 per ten gram in a single intra-day market, gold lost Rs 600 on Monday on cues from the global market where investors are busy shuffling their investment portfolios.
Gold closed the day at Rs 26,740 per 10 grams in the Delhi market.
The exporters feel that they would stand to gain if gold prices continue to decline, along with a fall in rupee against dollar. The Indian currency is near Rs 50-to-a-dollar mark, weakening by about nine% within this month. A weak local currency results in higher net realisation for foreign exchange earned by exporters.
