Gold prices ease globally, rupee depreciation limits fall in Sri Lanka

By Charithya Kumarasiri

Colombo, July 15 (Daily Mirror) - Gold prices have declined in international markets, with the downward trend also being reflected in Sri Lanka, although the depreciation of the rupee against the US dollar has limited the impact of the decline on local prices, according to the Sri Lanka Gem and Jewellery Association (SLGJA).

Sellakumar Kandasamy, Head of the Jewellery Segment of the SLGJA, told Daily Mirror that international gold prices have recently fallen to around US$4,000 per ounce, with prices currently fluctuating between US$4,000 and US$4,100 per ounce and occasionally dropping slightly below the US$4,000 mark.

He said Sri Lanka’s gold prices have followed the global trend, but the decline has been partly offset by the weakening of the rupee against the US dollar. The dollar, which was around Rs. 320 previously, has moved towards the Rs. 340 range, reducing the benefit of lower international gold prices for local consumers.

Mr. Kandasamy said the recent decline in gold prices was mainly driven by concerns over inflation in the United States, which have increased amid tensions between the US and Iran.

He added that the US Federal Reserve is unlikely to cut interest rates in the near term, while there is speculation that rates could even rise. Such developments could put further pressure on gold prices and contribute to continued volatility in the market.