Demand for gold in India has decreased by 39 percent in the first quarter of the calendar year as buyers postponed their purchases amid expectations of a price fall.
Data compiled by World Gold Council showed overall demand in India has plummeted to 116.5 tonnes worth Rs 29,900 crore between January and March 2016 as compared to 191.7 tonne worth Rs 46,730 crore in the corresponding period.
For 2016, however, India’s gold demand is likely to stay between 850 to 950 tonnes, a decline of around 50 to 150 tonne from the previous year.
Gold demand in India was hit largely due to jewellers’ strike following re-introduction of excise duty was a major reason that affected demand. The rise in gold prices and rumours of a cut in customs duty led consumers not to purchase gold,” said WGC, India, managing director PR Somasundaram.
“This increase was driven by huge inflows into exchange traded funds fuelled by investor concerns regarding economic fragility and uncertain economic conditions,” said the World Gold Council’s ‘Gold Demand Trends’ report.