INSUBCONTINENT EXCLUSIVE:
Gold futures in Mumbai have gained about 17 per cent since June on local factors.Jewelers in India, the top consumer after China, are facing
a bleak outlook as record high prices and fading demand threaten to drag annual gold sales to the lowest in three years.With demand growing
9 per cent during the January-June period, jewelers were expecting consumption to increase after a subdued couple of years
Those hopes are evaporating after a combination of high taxes, record prices, slowing economic growth and floods in the South Asian country
Padmanaban, chairman of the All India Gem - Jewellery Domestic Council, said by phone
Full-year demand is expected to be at par with 2016, when consumption slumped to a seven-year low of 666 tons, as buyers restrict themselves
to wedding-related purchases, he said.India's consumption of gold has been affected by the government's efforts to curb its trade
deficit and measures to discourage investors who used the metal to evade taxes
Prime Minister Narendra Modi's administration increased the import tax on the precious metal in July, which pushed domestic prices to an
all-time high of Rs 38,666 ($541) per 10 grams last week
Gold futures in Mumbai have gained about 17 per cent since June on local factors and in tandem with overseas spot gold, which has rallied to
slowdown in the Indian economy
Latest high-frequency indicators from auto sales to exports show demand at home and abroad is waning
A lingering crisis among shadow banks has curbed borrowings by consumers and companies, and an uncertain monsoon is casting a shadow on
rural consumption and wages
Imports, which comprise almost all the gold that India consumes, slumped to the lowest monthly inflow in July since at least March 2016
is more than 400 tons but it will be closer to 300 tons this year, Georgette Boele, senior FX and precious metals strategist at ABN Amro
Bank NV, said in an email
India's purchases during January to June totaled 372.2 tons, according to the World Gold Council, the highest for the period since
2013.With recession fears shaking the global market as the trade war drags amid a turmoil in the equity and bond markets, gold will continue
a high number of auspicious days in the period but because some buyers bought early in anticipation of higher prices and clearly they were
erratic Indian monsoon, which waters more than half of the country's farmland, has been adding to concerns about demand as scant rains and
floods affect crops and rural income
and later gave way to heavy showers that caused floods in at least four states including the biggest gold-buying southern Indian states of
As of Monday, the death toll rose to about 189 in Kerala and Karnataka, with the two states evacuating almost a million people to safer
places.Jewelers usually start stocking up during this period for India's festival season, which starts from late August and runs till
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
