The demand for gold in the global market may be on the rise but the demand for gold in India is likely to fall. One of the main reasons why demand is likely to fall is because the marriage season in India for this year is over. Another reason for likely fall in demand is high prices of gold.

Gold had reached a high of Rs. 20,924 in the retails market and is now trading close to Rs. 20,500. Internationally the demand of gold is rising because countries are looking at gold as a safe investment. Most economies in the world are facing difficult financial situation and are looking at gold investment as a secure investment that will safeguard their economy.

However, rise in prices of gold in India is not at par with their international counterparts. The price of Indian rupee has risen considerably against that dollar which has negatively impacted the price of gold. Indian Rupee that was trading at Rs. 50 per dollar is now trading at about Rs.45 per dollar.

Most analysts are expecting the gold demand to rise in India. The high growth rate of the country and rise is working population of the country is likely to increase the demand for yellow metal in future.