Bengaluru: A weaker rupee against the US dollar shot up gold prices and compared to previous years, the demand for the precious metal was less during Diwali.

However, India's economy is expected to grow faster than China's and it is set to have a 'positive effect' on gold demand, according to a report on Wednesday.

As per Reuters, at the end of October, gold prices were at their highest (Rs 33,000 per 10 grams) since September 2013. This resulted in less demand for gold coins and gold jewellery during Diwali.

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"Though there are crowds, people are not buying as per the expectations, but merely making token purchases of five, 10, 20 grams to mark the auspicious day. Mostly gold coins/guineas are moving while small, medium or big articles of jewellery are virtually ignored," Mumbai Jewellers Federation president Rakesh Shetty was quoted as saying by IANS.

"Every year gold trades at a premium before Diwali. This year is unusual. Jewellers are reporting a steep fall in retail demand," said a Mumbai-based bullion dealer with a private bank, according to Reuters.

Recently, the International Monetary Fund (IMF) predicted the Indian economy to grow at 7.3% in 2018, or 0.7 percentage points over China's anticipated growth race. In 2019, India is expected to grow at 7.4%. 

This prediction of Indian economy will have a noticeable impact on gold demand, according to Forbes website.

Also, as per the 2018 edition of UBS and the PwC's Billionaires Report, the number of billionaires increased from 100 to 119 and their wealth increased 36% in 2017.