In a telephonic interview with Reuters, Anantha Padmanabhan, Chairman of the All India Gem and Jewellery Domestic Council (GJC), said that India’s gold demand could drop as much as 10% in 2019 and reach the lowest level in three years.
Record high local gold prices are likely to dent domestic consumption. India’s is gold’s second-biggest consumer after China.
Key Quotes:
“Of late, customers are not used to such a jump in prices,”
“They will not raise allocations to buy gold just because prices have risen. Volume-wise demand will drop 10% from last year.”
The World Gold Council (WGC) in May forecast consumption this year at 750 to 850 tonnes after demand rose 5 percent in the March quarter. However, over the last week, the global prices have hit six-year highs on escalating US-Iran geopolitical tensions.
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