A question on gold

I recently submitted a question to Marcus Grubb who is the Managing Director of Investment Research and Marketing at the World Gold Council and will answer readers’ questions on the outlook for the bullion market on Monday, October 27 in the Financial Times. Let's see if he considers my question worth answering

Gold is generally considered a hedge against inflation. However, my confusion is related to the different rates of inflation in Asian countries as opposed to developed economies. If the Indian Re were to appreciate back to 40/$, gold would be considered extremely cheap in India and demand would grow, more so with a 10% inflation. Am I correct in my thinking?