Indian Gold Demand Could Fall 50 Percent in Q4

Reuters reported that in the December quarter, India’s gold buying is likely to drop to its lowest level in eight years. Lackluster investment demand and repeated droughts have led to lower earnings for the country’s farmers.
As quoted in the market news:

The sluggish demand could halve imports by the world’s second-biggest gold consumer in US dollar terms in the final quarter, a retailer and two bank dealers said, putting further pressure on global prices that hit a five-year low earlier this month.
December quarter demand could fall to 150 t to 175 t, said Bachhraj Bamalwa, a director with the All India Gems & Jewellery Trade Federation, from 201.6 t a year ago and a five-year average for the quarter of 231 t, according to World Gold Council data.
The December quarter usually accounts for about a third of India’s gold sales as it takes in the start of the wedding season as well as festivals like Dhanteras and Diwali, when buying gold is considered auspicious.

Click here to read the full Reuters report.