‘India’s gold demand set to cross 800 tonne’

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As the second largest consumer of gold in the world, the bullion exchange will position India in the global market and also give a voice…reports Asian Lite News

India’s demand for gold will be between 800-850 tonne in 2022, said a top official of World Gold Council-India.

He also said 80 per cent of the demand will be for jewellery and the balance in the form of gold coins.

The gold demand in India for 2022 will be above 800 tonne. It will be between 800 tonne to 850 tonne. The 5 per cent duty hike on the gold by the Central government will not have any major impact on the demand for the yellow metal, said Somasundaram P.R., Regional CEO India, World Gold Council.

In 2021, the demand for gold in India was about 797 tonne.

He also said the Indian government is watching the rupee: dollar exchange. The government may act against imports if the rupee continues to depreciate against the dollar.

On the impact of the India International Bullion Exchange (IIBE) Somasundaram said it is important for India. With a robust regulatory framework, the exchange is an important component.

As the second largest consumer of gold in the world, the bullion exchange will position India in the global market and also give a voice.

“If the Indian gold refiners can align with the global standards then Indian gold bars can also be traded on the exchange,” Somasundaram added.

Amid inflation and high gold prices, India’s demand for the yellow metal declined sharply in the January-March quarter by 18 per cent to 135.5 tonnes, according to World Gold Council (WGC).

As per the report, the demand for gold was down 26 per cent to 94.2 tonnes on a year-on-year (YoY) basis.

Compared to 2021, the demand stood at 165.8 tonnes in the first three months of the year.

Speaking to ANI, Chairman of Bullion and Jewellers’ Association, Yogesh Singhal, said the prices of gold rose due to the Ukraine-Russia war.

On the other hand, the budget of the consumers shrank, he added.

“The consumer demands light jewellery at a price of Rs 50,000 and when the price is at Rs 55,000, they stop coming,” Singhal said.

He further said that when the price falls to around Rs 50,000, only then will the consumers return to the market.

“Earlier, on the occasion of Akshaya Tritiya, the demand used to be much more. Currently, the jewellers’ markets are empty and the reason for that is a rise in the prices of gold,” Singhal said.

Since the outbreak of the COVID-19 pandemic, he said, the jewellers’ market has been impacted. “Until the situation gets better, the market will keep fluctuating,” he added.

If the Ukraine-Russia war ends, the price of gold is expected to fall by a margin of Rs 2,000 to Rs 4,000, added Singhal. (ANI)

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