Slump after 5 quarters amid high prices, rupee depreciation.
India, the world’s largest importer of gold, saw a sharp decline in demand for the first time in five quarters in July-September. The demand fell 23 per cent year-on-year from 263.9 tonnes to 203.3 tonnes.
This was in variance with the global demand, which went up six per cent. China’s demand rose 16 per cent in the same period, according to World Gold Council (WGC) data.
WGC managing director Ajay Mitra said the demand dip in India was understandable, as buyers faced the double whammy of higher prices due to rupee depreciation and high inflation. “High prices of food articles and fuel, along with higher than expected interest rates on home loans, squeezed customers’ investible income.”