SEATTLE (Scrap Monster): London-based Metals Focus has reduced its gold demand estimates for India during the current year. The precious metals research consultancy had published a very bullish outlook during the beginning of the year.
According to Chirag Sheth, principal consultant at Metals Focus, the rise in import duties in July this year had a short-term impact on the demand situation in the country. The farmers’ income are likely to be impacted badly due to uneven monsoon rains in several parts of the country this year, which in turn would reduce their ability to buy gold. The inflationary pressures too may dent demand for the yellow metal in 2022. It must be noted that gold demand had topped around 800 tonnes last year.
As compared with its earlier demand growth forecast of 7-8% for the year, it now expects the demand in 2022 to be little changed from the previous year.
The jewellers expect gold sales to pick up significantly during the final quarter of the year, mainly triggered by wedding season followed by festivals such as Diwali. However, the gold sales during the three-year period is unlikely to match the record sales of 343.9 tons reported during Q4 2021, Sheth noted.
Meantime, All India Gem and Jewellery Domestic Council (GJC) noted that gold price volatility has kept many buyers on the sidelines during the previous few months.
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