India Gold demand to rise in second-half after slump in first: WGC

INDIA August 11 2016 4:47 PM

MUMBAI (Scrap Register): Gold demand of India is expected to rise in the second half of 2016 after falling to the lowest in seven years in the first half, according to the World Gold Council. 

The demand is expected to to rise between 503 to 603 tons despite a 26 percent rally in local prices in the second half, they added.

The rise in demand is expected due to the beneficial monsoon rains that will spur rural demand during the peak festive season. During the past few quarters rural demand for Gold was down as drought in nearly three decades squeezed farmers' earnings. 

Gold demand in the first half of 2016 fell 30 percent from a year ago to 247.4 tonnes, the lowest since 2009. 

The 2016 Gold demand forecast has been lowered by WGC between 750 to 850 tons, from earlier projections of 850 to 950 tons. In 2015 Indian demand stood at 864.3 tons.