India’s gold demand likely to fall to 7-year low in 2016 - WGC

According to a latest report published by the World Gold Council (WGC) on Tuesday, the demand for gold in India, world’s second largest gold consumer, dropped to the lowest in seven years so far this year on higher prices and increased transparency on purchases and income disclosure by the Indian government.

WGC reports, “India's gold demand in the first three quarters of 2016 fell 29 percent from a year ago to 441.2 tonnes, hit by price rises and government moves such as the mandatory disclose of tax code for high-value jewellery purchases.”

“Smugglers were offering gold at heavy discount during the third quarter and forced many refiners to scale down operations.”

"Sudden drop in prices before Diwali, good monsoon rains and trade activity back in normal fashion means demand in the fourth quarter would be the higher compared to the first three quarters."

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