Gold: India's 2020 demand could hit 26-year low as prices rally to record high – WGC

Somasundaram PR, the managing director of the World Gold Council (WGC)'s Indian operations, said in a statement on Thursday, India’s demand for the precious metal is likely to hit a 26-year trough, as record high prices curb retail purchases.

Key quotes

"Fast-rising gold prices could act as headwinds."

“India's gold consumption in the first half of 2020 plunged 56% on-year to 165.6 tonnes. Meanwhile, the coronavirus-triggered lockdown also slashed demand by 70% in the June quarter to 63.7 tonnes, the lowest in more than a decade.”

“The weak demand in the first half could drag down India's gold consumption in 2020 to the lowest since 1994, when demand stood at 415 tonnes.”

“It is still difficult to provide an estimate for full-year demand as the coronavirus crisis is still unfolding.”

"Indian demand has previously jumped as much as 300 tonnes in a quarter. Latent demand could come out in the second half.”