If you are making a mood to buy gold then you should wait for a while now. By the way, for the last several months, the price of gold has been moving in a circle. In August-2020, gold had set a record high of Rs 56000 per 10 grams. After that the fall in gold dominated, which has not yet recovered. In fact, due to the global recession, the prices of gold are expected to fall further. According to the World Gold Council (WGC), gold consumption in India between October and December may decline by about a quarter compared to last year.
Signs of declining demand in rural areas
There was an increase in sales during the festive season. But the figures that were expected, did not reach the success. Inflation is believed to be a major reason behind the fall in gold prices. The demand for gold may be low, especially in rural areas. People in rural areas buy jewelery on a large scale this season.
Let us tell you, India ranks second among the countries with the highest gold consumption in the world. China is in the first place. According to experts, falling demand could impact prices, which are trading near their lowest levels in more than two years.
Gold cheaper by Rs 6000 from all time high
According to the website of India Bullion and Jewelers Association, gold became cheaper at Rs 50,460 in the bullion market on November 01, which had reached 52 thousand at the beginning of last month. At the same time, in August-2020, gold touched a record level of Rs 56000.
Let us tell you, there is a continuous increase in the retail inflation rate. India’s annual inflation rate in September was above 7%. Two-thirds of India’s gold demand usually comes from rural areas. (According to the WGC, India’s gold demand in the December quarter is likely to fall to around 250 tonnes from 343.9 tonnes last year. The fall could bring India’s total gold consumption to around 750 tonnes in 2022, up from last year’s 343.9 tonnes, he said. 6% less than the year’s 797.3 tonnes.
However, on the basis of consumer and central bank purchases, global gold demand has reached pre-Covid levels. Gold demand grew 28 per cent year-on-year to 1,181 tonnes in the September quarter, and so far in the year 2022, the demand grew by 18 per cent compared to the same period last year.