Gold consumption in India this year is expected to drop to its lowest in last 8 years, said World Gold Council on Thursday 09 Nov 2017. Indian gold demand in 2017 is likely to be around 650 tonnes, compared to that of the 10 year average of 845 tonnes.
As per market experts the weakening demand for gold in India is due to various government moves like demonetization, GST, making PAN card compulsion for cash purchase of gold over two lac rupees and anti-money laundering rules for jewellers. Further uneven monsoon in the country this year have also affected gold sales as two-third of India's gold demand comes from rural India. Jewellers and market experts are now hoping for better sales this wedding season (October - September) for some respite.
Fall of demand for gold in India is expected to put pressure on gold internationally as India being one of the highest importers of gold, this may result in the drop of gold rate in India in coming days.