The gold which is also known as the yellow metal is one of the most sought out and favoured ones amongst the Indian community. The sheer love that Indians share with the ornamental metal dates back to centuries.
Off lately, the prices of the yellow metal are surging up on a regular basis in the domestic market in India despite a fall in its demand in the local market. The rallying prices of the gold is the reason behind its declining demand which makes the consumers to think twice before shelling out their hard earned money extravagantly on this precious metal.
India mainly imports gold from abroad and has secured the tag of the second largest importer of gold in the world. The rate at which the prices are moving has made the consumers to cut down its purchase despite the ongoing wedding season.
As per the recent reports from the World Gold Council (WGC) states that during fiscal 2018, the demand for gold in India reached 4,345.1t, up from its previous record of 4,159.9t during 2017. The jewellery demand stood steady during the year at 2,200t and the yellow metal saw an increase of its use in the field of technology to hit a record high of 334.6t.
In the global scenario, the precious metal is the best bet compared to the dollar due to its safe haven tag. The slowness in the economic growth of the world added with weak economies of China and Europe has led the investors to focus on gold over the dollar. The weak U.S. economic data and the pause of interest rate hikes by the U.S. Federal Reserve have forced the investor community to depend on the yellow metal, strengthening it further.
Most of the people in India are waiting to witness fall in its prices and are currently postponing the purchase of jewels at the moment and some are even selling off their old gold to make a profit, a trader stated.
One has to wait and watch as to how long the present trend continues which is hurting consumers sentiments badly.