SMM News: it is the holiday season at the end of the year, the peak season of gold demand is coming, but due to the special circumstances of this year's epidemic, coupled with the soaring gold price, the demand for gold makes the market wonder.
The most important Diwali of the year in India has come, and it is also the most exuberant time of the year for Indian gold ornaments.
The surge in international gold prices this year and one of the worst epidemics in India have cast a shadow over the demand for gold during this year's Diwali.
The gold price of the Indian rupee has also risen sharply this year, setting a record.
Rhona O'Connell, director of market analysis at StoneX, said that the epidemic has brought a lot of problems this year, and India's previous city closures have affected gold demand, so there is a large amount of demand that has not been met.
"but the weaker rupee and higher local gold prices in India have affected demand."
The gold price of the rupee has risen nearly 30% so far this year, and the market expects gold demand for this year's Diwali to fall by about 30% from a year earlier.
Somasundaram PR, general manager of the (WGC) of the World Gold Council, also said that demand for gold jewelry in India is recovering, but will decline compared with last year.
"there will be a larger proportion of institutional buyers, and there will be higher demand for gold coins and bars."
According to people in India's domestic gold industry, gold demand is expected to fall 70% this year compared with the same period last year, but the difference in value will be similar due to higher gold prices.
