India’s Gold demand during 2018 hurt by weak Rupee
MUMBAI (Scrap Register): Gold imports in India, the world’s second-largest gold-consuming nation, fell sharply in 2018 as buying was deterred by high domestic prices due to a weak rupee, said commodities brokerage SP Angel.
According to news reports, India’s purchases from overseas fell 20% to 762 tons. The figure represents the second-smallest amount shipped into the country this decade, SP Angel added.
Analysts later added, Demand for gold across the Asian nation has tumbled as a slump in the rupee made the metal more expensive in the price-sensitive market.
A liquidity crunch and government measures to curtail consumption have exacerbated the decline. The near-term outlook remains positive, however, with demand expected to rise up to 20% as purchases for investment may pick up.