INDIA’S gold demand may decline 10 per cent this year when compared to 2018 following bullish local prices, an Indian industry body said.
“Higher prices have reduced the demand for the yellow metal in the domestic market during major festive seasons”, Reuters quoted All India Gem and Jewellery Domestic Council (GJC) chairman Anantha Padmanabhan as saying.
A possible 10 per cent decline in the demand would be the lowest in 36 months.
A fall in demand for the commodity is likely to limit a rally in global prices that climbed to six years high this week.
Gold prices in India moved up 10 per cent when compared to the last month and touched a record Rs 35,960 per 10 grams on Tuesday (25).
Gold consumption in India fell 1.5 per cent last year to 760.4 tonnes, below a 10-year average of 838 tonnes according to the World Gold Council (WGC).
WGC in its May forecast said gold consumption this year may reach 750 to 850 tonnes after the demand climbed five per cent during the first three months of 2019.
Gold imports by India in May climbed 49 per cent year-on-year basis to 116 tonnes as a correction in domestic prices during a festival season that boosted retail demand.
In India, demand for gold usually rises after the month of June with the start of the wedding season and the festivals such as Dussehra and Diwali.