Gold demand keeps soaring in India

Despite jewellers' strike, soaring price and monsoon deficit, demand for gold has made a strong comeback in India and the net import of the 'yellow metal' is likely to be about 800 tonne this year.

According to the World Gold Council (WGC), India's net gold imports for domestic consumption is expected to be about 800 tonne this year following a pick-up in momentum during the festival season.

According to WGC sources, the net imports of domestic consumption was 969 tonnes in 2011.

India's gold imports may touch 800 tonne in 2012: WGC

"In the first two quarters of 2012, the demand was not that great following economic downturn, monsoon deficit, duty issues and jewellers strike, high prices. However, it picked up last month in the festival season and this year we expect the gold demand to be around 800 tonne," WGC Director, Investment, Amresh Achrya told PTI here.

Jewellery is the largest growth driver for the yellow metal. However, with increasing awareness, gold electronic traded fund (ETF) is gaining ground globally, WGC sources said.