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In its latest outlook report on gold, the World Gold Council (WGC) projected that gold demand in India is expected to revive in the second half of this year, having fallen 6 percent in the first half.

Somasundaram PR, managing director of WGC’s Indian operations, told Reuters, “a hike in crop prices and farm loan waivers would improve rural demand in the second half of the year.”

“If the monsoon delivers lower rainfall then we may end at the lower end of the range,”  he added.

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In the April-June quarter, Indian gold demand fell 8 percent from a year ago to 187.2 tonnes, hit by a rally in local prices due to a depreciating Rupee.

Investment gold demand fell 9 percent in the first half of 2018 from a year ago to 71.6 tonnes as the stock market was giving better returns than bullion.