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Gold demand in India dropped 26% in first quarter |
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KOLKATA: Gold demand in India in the January-March quarter dropped 26% to 190.3 tons from 257.5 tons in the year earlier, according to the World Gold Council.
High import duty coupled with the 80-20 rule pushed down gold consumption.
Gold jewellery demand in the first quarter declined 9% to 145.6 tons from 159.5 tons in the year earlier. Consumers stayed away from the jewellery market as the price of the yellow metal soared due to a weak rupee and a high premium.
Investors also avoided the yellow metal. According to WGC, total investment demand was down 54% to 44.7 tons from 98 tons in the year earlier.
Total gold recycled in the first quarter was marginally up to 21.3 tons from 21 tons in the year earlier.
Based on the first-quarter demand pattern, WGC has pegged the whole year's consumption at 900-1,000 tons.
The 80-20 rule stipulates that 20% of gold imported has to be exported
Source : economictimes.indiatimes.com
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