India’s gold demand to drop 10% in 2019, three-year lows - Reuters

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.