Gold demand in India will hit a 26-year low

Gold prices in India have risen by 3% this year

- Gold consumption falls 3% to 12.5 tonnes in first half of 2020

(Commercial Representative) Mumbai, Ta. 30 July 2020, Thursday

Somsundaram PR, managing director of the World Gold Council's (WGC) India unit, said demand for gold in India is likely to reach a three-year low as gold prices hit new record highs in 2020 due to the Koro epidemic. Of course, the rise in demand for ETF gold has resulted in a surge in global gold prices.

It may be mentioned that the price of gold at home has crossed a record high of Rs 5,000 per 10 grams in the futures market and has reached a record new high. Which has been seen due to the rise in global gold prices. In India, gold prices have risen more than 3% so far this year. The domestic price of gold includes 12.5 per cent import duty and 3 per cent GST. Somsundaram further said that India's gold consumption is likely to touch a post-19 low in 2020 due to weak demand in the first half of this year. At that time, the demand for gold was 215 tonnes. With this, he said, it is difficult to estimate the demand for the entire year as the coronavirus crisis continues.

Gold consumption in India has declined by 9 per cent to 12.5 tonnes in the first half of 2020. Gold demand, meanwhile, fell by 20 per cent to 6.5 tonnes in the June 2020 quarter due to a lockdown caused by the Corona epidemic, the lowest level in a decade, according to a report released by the World Gold Council today. Gold demand through gold ETFs stood at 5 tonnes in the first half of the year. The ETFs have seen record investment flows as central banks and governments around the world have cut rates and created huge liquidity-liquidity as a result of the global coro epidemic. Central banks bought 4 tonnes of gold in the first half of the year. Which is 3% less than the record of the year 2016. Investment in gold bullion and coins, meanwhile, has declined along with Asia's weakness, falling 15 per cent to 8 tonnes in the first half of the year. Demand for jewelery also declined by 5 per cent to 5 tonnes and gold consumption in technology fell by 15 per cent to 150 tonnes.

In the second quarter, India's demand for gold fell by 20 per cent to 7.5 tonnes. India's demand for gold fell 3 per cent to Rs 2,500 crore. Total demand for jewelery in India has declined by 8% to 8 tonnes. Demand for jewelery fell by 3 per cent to Rs 19.50 crore. Total investment demand declined by 6 per cent to 12.5 tonnes in the quarter, while gold investment demand declined by 9 per cent to Rs 30 tonnes. In the second quarter, total gold recycling in India fell by 9 per cent to 12.5 tonnes, while total gold imports fell by 9 per cent to 11.5 tonnes.