Country's gold demand during July- September quarter fell by 32 per cent to 148.2 tonnes mainly due to supply constraints and high inflation. World Gold Council (WGC) on Thursday said that due to the supply issues and high inflation has dented the total demand. Going forward WGC is expecting the demand during the fourth quarter to be lower than 262 tonnes in same quarter last year.
The overall demand for the whole of 2013, however, is likely to be 900 tonnes, higher than 860 tonnes in 2012. Also, neighbouring China with an estimated demand of 1,000 tonnes may topple India as the world's top gold consumer.
Somasundaram P R, WGC's Managing Director (India) said, “Supply constraints and high inflation resulted in decline in gold demand by 32 per cent to 148.2 tonnes in third quarter of this year as compared to 219.1 tonnes in the same period last year.”
Both gold jewellery and investment demand declined by 23 per cent and 48 per cent, respectively, in the third quarter of this year.