NEW DELHI; Gold demand in India has fallen by over 70%, as higher import duty, subdued buying sentiment and a sharp correction in prices keep consumers away. With MCX gold down over Rs 50,000 from its record high, here's why demand has slumped and what experts expect next. Gold's sharp correction appears to be changing how Indians buy the precious metal.
After falling nearly Rs 50,000 from its record high earlier this year, gold demand in the domestic market has dropped by more than 70%, with many households now choosing to sell old jewellery instead of making fresh purchases, according to the India Bullion and Jewellers Association (IBJA).
MCX gold was trading at around Rs 1,42,546 per 10 grams on Wednesday, more than Rs 50,000 below its all-time intraday high of Rs 1,92,991 touched earlier this year. Globally, spot gold slipped 0.6% to $3,981.69 an ounce after hitting a seven-month low in the previous session as expectations of higher US interest rates continued to weigh on bullion.