Gold demand in India is expected to go up in Q2 2016 after a weak Q1 thanks to the festival season of Dhanteras and Diwali, according to the World Gold Council (WGC).
In Q1 2016 India’s gold demand slashed nearly 30 percent at 247 tonnes when compared with 352 tonnes in the same period last year. Gold demand in Q2 2015 was 513 tonnes.
“We expect the second half to be good this year. The monsoons are good. Also, traditionally the fourth quarter has been the best season for India when demand picks up during festivals of Dhanteras and Diwali,” said Somasundaram PR, managing director of WGC in India.
A sharp jump in gold price, weaker rural incomes and government regulation including the income disclosure scheme and the additional one percent excise duty mainly accounted for gold demand during the quarter, WGC said.
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