India’s Gold Demand: The festive season is about to start in the coming days. But there is no good news for the traders and jewelers associated with gold. Rising inflation may have an impact on the demand for gold during the festive season. The World Gold Council has said that inflation is at its peak in the country, which has had an impact on disposable income. Due to this, the demand for gold may decrease in the second half of 2022. If there is a decrease in the demand for gold, due to this, the prices may also be affected.
According to PR Somasundaram, CEO, World Gold Council, inflation in rural areas has increased the problems of the people, which has affected the ability of the people to save. They say that due to the weakness of the rupee against the dollar and the increase in import duty on gold, the prices may increase, due to which the demand for gold may decrease. In fact, in the month of June, retail inflation was at 7.01 percent above the RBI’s tolerance level of 6 percent. Whereas it was 7.04 percent in May and 7.79 percent in April.
According to the World Gold Council, during the April-June quarter, the demand for gold has increased by 43 percent and has reached 170.7 tonnes. In fact, there was a tremendous demand for gold during the wedding season and Akshaya Tritiya. In the first six months of 2022, the demand for gold has increased by 43 per cent to 306.5 tonnes. Earlier, the council had projected the consumption of 800 to 850 tonnes of gold in 2022.