BackIndia's gold demand could fall to three-year low as prices hit record high
Lower purchases by India could limit a gold rally in global prices that hit a 6-year high earlier this weekVolume-wise demand for gold is expected to drop 10% from last year
PremiumMUMBAI : India's gold demand could fall 10% in 2019 from a year ago to the lowest level in three years as a rally in local prices to a record high dents retail purchases during a key festive season, the head of an industry body told Reuters.
Lower purchases by India, the world's second biggest consumer after China, could limit a rally in global prices that hit a 6-year high earlier this week.
"Of late, customers are not used to such a jump in prices," Anantha Padmanabhan, chairman of the All India Gem and Jewellery Domestic Council (GJC) told Reuters by telephone.
"They will not raise allocations to buy gold just because prices have risen. Volume-wise demand will drop 10% from last year."
India's gold consumption eased 1.5% in 2018 to 760.4 tonnes, below a 10-year average of 838 tonnes, according to data compiled by the World Gold Council.
Local gold prices hit a record ₹35,960 per 10 grams on Tuesday, having jumped more than 10% over the past month.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
