Inflation, India’s gold demand may decline in July-Dec: WGC

While demand of Indian gold surged by 42% YoY in the first half of 2022, it may decline in the second half due to the higher inflation, according to World Gold Council (WGC).

“Inflation is making it difficult for people, especially in rural areas, to save more and allocate to gold,” Somasundaram PR, regional CEO of WGC’s Indian operations, told Reuters. Demand of bullion in the world’s second largest consumer market may also get effected due to the increase in import duty.

As per its earlier estimates, WGC had estimated gold consumption at 800-850 tonnes in 2022. But with the likely slowdown in the second half, it is  estimated to be around 800 tonnes.

Higher prices of gold may in fact encourage Indian consumers to liquidate their holdings, which could lift scrap supplies in 2022 to over 100 tonnes from 75.2 tonnes last year, Somasundaram stated.

Leave a comment

Subscribe To Newsletter

Get to know of latest happening in TPCI & in the world of trade and commerce