The recent decline in gold prices may drive the demand for the yellow metal in India to around 965 tonnes for the calendar 2013, according to the World Gold Council.
“We had projected India’s gold demand to be in the range of 865 to 965 tonnes for 2013. Given the price trend, we believe demand to be in the top end of the range,” P.R.Somasundaram, Managing Director (India), World Gold Council, told reporters on the sidelines of an Assocham event. The gold consumption in India stood at 864.2 tonnes last year.
As much of India’s gold demand is met through imports, the WGC expects the inflow of the yellow metal into the country at around 965 tonnes. About 35 per cent of the gold demand in India is for investment purpose and is held in the form of bars and coins, Somasundaram said adding that the demand during the recent festival of Akshaya Tritiya was good.
India is the world’s largest buyer of gold followed by China and both countries account for over half of the global demand.