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The World Gold Council (WGC) in its latest report have said that India’s gold demand fell nine percent to 690.4 tonnes in 2019 from the previous calendar year as record domestic prices and economic slowdown dented retail purchase .
However, in 2020, gold demand in India — the world’s second-biggest consumer after China — could increase to 700-800 tonnes on hopes of increased acceptance of high price level and likely economic reforms boosting consumer confidence.
The domestic gold price finished 2019 just above Rs 39,000 per ten grams, almost 24 percent higher than at the end of 2018, WGC said in its latest report.
“As policy measures unfold, broader economic growth accelerates and local prices of the past six months become more acceptable among households, India’s gold demand will be in the range of 700-800 tonnes in 2020,” Somasundaram PR, Managing Director of WGC’s India operations, told PTI.
The WGC expects policy-led and industry-led initiatives to bring a marked shift in making the industry more transparent and organised this year, he said.
