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Last Updated : Jun 26, 2019 11:18 AM IST | Source: Reuters

India's gold demand could fall to three-year low as prices hit record high

Lower purchases by India, the world's second biggest consumer after China, could limit a rally in global prices that hit a 6-year high earlier this week.

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Representative Image

India's gold demand could fall 10% in 2019 from a year ago to the lowest level in three years as a rally in local prices to a record high dents retail purchases during a key festive season, the head of an industry body told Reuters.

Lower purchases by India, the world's second biggest consumer after China, could limit a rally in global prices that hit a 6-year high earlier this week.

"Of late, customers are not used to such a jump in prices," Anantha Padmanabhan, chairman of the All India Gem and Jewellery Domestic Council (GJC) told Reuters by telephone.

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"They will not raise allocations to buy gold just because prices have risen. Volume-wise demand will drop 10% from last year."

India's gold consumption eased 1.5% in 2018 to 760.4 tonnes, below a 10-year average of 838 tonnes, according to data compiled by the World Gold Council.

Local gold prices hit a record 35,960 rupees per 10 grams on June 24, having jumped more than 10 percent over the past month.

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First Published on Jun 26, 2019 11:07 am
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