India saw a drop in its gold prices in February, according to a report by the World Gold Council. The report states that while gold gained prices across international markets, India saw a hit because its currency gathered strength after the trade agreement with the United States.
Currency strength saw local gold prices drop in India and China; elsewhere, gold returns were positive. Experts pointed towards a possibility of the US dollar being weakened in the medium-term, which generally supports gold.
The global year-to-date return for gold is 'up 20%', but the recent strength of the rupee has provided a different experience for those buying in local markets.
For the investors, the 'February return' for gold in Indian rupee terms was -3.5 per cent, making it one of the only regions, alongside China, to see a negative return during the month.
As of late February, the local price stood at '1,58,585' for every 10 grams.
