Soaring bullion prices threaten to dull India's festive gold sparkle
:block" width="75" height="75" src="https://www.businesstimes.com.sg/assets-web2/generic_newsletter-CGny2zps.png"/>
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Gold demand in the December quarter last year stood at 265.8 metric tons, boosted by a price correction just ahead of the festive season after New Delhi slashed import duties on the metal to 6 per cent from 15 per cent in a bid to tackle smuggling.
Consumer sentiment has improved in the last few weeks despite rising prices, and in value terms, demand will still be much higher even if volumes decline, said Sachin Jain, CEO of the World Gold Council’s Indian operations.
Besides, investment demand, especially through exchange-traded funds (ETFs), has been rising as gold has been delivering better returns than competing asset classes, Jain added.
SEE ALSO
Retail gold buying could get a boost from the government’s move to cut goods and services tax (GST) on consumer items, as this will leave people with more disposable income, Harshad Ajmera of wholesaler JJ Gold House in Kolkata.
Earlier this month, India announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand. REUTERS
