Falling Gold Prices Boost Demand in India: WGC

gold jewelleryMumbai: A fall in gold prices has boosted demand in India, the world’s second largest consumer, despite the summer months being a traditional quiet period, World Gold Council (WGC) said on Friday. It also said that fall in the gold prices are not universally perceived as “negative”.

According to WGC, gold prices have fallen by 3.2 per cent in India, 3.6 per cent in China and 1.2 per cent in Turkey.

“Here, consumers will view lower prices as a buying opportunity,” it said in its market report.

“As a result, despite the summer months being a traditionally quiet period, retailers in these price sensitive markets have seen an uptick in consumer interest. Consumer interest in India has increased too,” it noted.

While the monsoon season is usually a very quiet period for Indian gold demand, this bodes well for the festive season beginning in September, it added.

On June 20, gold prices in the global market had fallen to a five-year low at $ 1,086.18 an ounce amid growing expectations that the US Fed may raise interest rates later this year, eroding appeal of the precious metals.