The holiday season is just around the corner. Indian gold demand is expected to pick up.

SMM: the strong price of gold this year puts pressure on the demand for physical gold, as is the case in India, but (BMO Capital Markets), the capital market of the Bank of Montreal, believes that demand for gold in India is expected to pick up in the next six months.

"starting in October, India will enter the six-month holiday season, consumer demand for gold jewelry will pick up significantly, and the discount on gold prices in the country will fall."

In the first half of this year, the demand for gold jewelry in India fell by 60% compared with the same period last year, on the one hand, the closure of various parts of India after the epidemic, on the other hand, higher international gold prices affected demand, and the discount on local gold prices in India rose sharply.

Whenever the festival or wedding season arrives, Indians are in the habit of buying gold, so the upcoming holiday season, including some important festivals, means that demand for gold jewelry in India is expected to pick up significantly.

The discount on Indian gold prices rose to $60 an ounce at one point in September because of weak demand, and analysts believe the discount could return to about $17 an ounce if demand picks up.

Nevertheless, gold prices in India are expected to remain at a discount until the end of this year, as the epidemic will still affect gold demand.

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