INSUBCONTINENT EXCLUSIVE:
lowest level in three years in 2019, the World Gold Council (WGC) said on Tuesday, as domestic prices climb to a record against a backdrop
to around 700 tonnes, the lowest since 2016, said Somasundaram PR, the managing director of WGC's operations
In a report, the WGC said gold consumption in the quarter ended September slumped nearly a third from a year ago to 123.9 tonnes.The fall in
imports could also help ease the country's trade deficit, supporting the rupee."Along with higher prices, gold demand is getting affected
by weak rural sentiment," said WGC official Mr Somasundaram
"Excess monsoon rains have damaged crops," the official noted.Two-thirds of gold demand comes from rural areas, where jewellery is a
traditional store of wealth.India received its highest monsoon rainfall in 25 years during the June-September season, with rains continuing
even in October, damaging summer-sown crops such as cotton, soybeans and pulses ready for harvesting.In September, local gold futures hit an
spike in domestic gold prices and a hike in the import duty slashed demand during the July-September, the WGC said
demand is likely to be lower than last year's 236.5 tonnes, Mr Somasundaram said, but the drop is unlikely to be as steep as in the
July-September quarter.Demand usually rises in the October-December quarter due to the wedding season and festivals such as Diwali, when
buying bullion is considered auspicious.Many Indians are using the rally in prices to liquidate their gold ornaments, the WGC official said,
News from India and around the world on TheIndianSubcontinent.com
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.
