Gold Sales Plummet 8-10% in India Amid War Uncertainty
Retail gold demand in India has been sluggish ahead of the festive season due to ongoing war and price uncertainty, according to Surendra Mehta, Secretary of the India Bullion and Jewellers Association (IBJA).
Gold sales are currently down by 8-10 percent in September compared to last year, with customers hesitant to make purchases amid concerns that prices could further drop if the war continues.
Mehta emphasized that for gold demand to revive, the war must end and prices should start appreciating. In recent months, spot gold prices in India have declined by more than 7 percent since the US-Iran conflict began in late February, hovering above Rs 1,61,700 per 10 grams on MCX.
The domestic price of 24-karat pure gold has surged about 60 percent from around Rs 98,000 to Rs 1.57 lakh per 10 grams compared to last year, which may be contributing to the decline in demand.