Gold demand reduced to almost half in the Navratri-Dusshera period and after the government reversed the earlier KYC for gold purchase gain some ground on demand terms but nonetheless with the prices going up, the demand remained way lower in comparison to 2016.
The last quarter with festivities followed by wedding season sees major demand in the precious yellow metal. But this year the demand has been lower by around 15% this year said the chairman of All Indian Gems & Jewellery Trade Federation. He also added, "In some regions, demand was nearly 30 per cent lower than normal, but in others, it was at par compared with last year. Overall for the country, demand was down around 15 per cent."
In the year 2017, the gold prices have surged in price by 8% and the price sensitive customers had a tight budget and hence low demand.
The world's second large gold consumer only after China saw sales in the metal hit due to the implementation of GST.