Gold appetite in India seen at lowest level since 2016 on weak economy

Lower volume: A saleswoman displays a gold necklace inside a jewellery showroom in Kolkata. Indians bought 123.9 tonnes of gold in the July-September period, down 32% from a year earlier. — Reuters

MUMBAI: Demand for gold in India this year is likely to drop to the lowest since 2016 as elevated prices and a weak economy deter buyers in the world’s second-biggest bullion consumer, according to the World Gold Council.

Purchases may be at the lower end of a 700 to 750 tonne range, the least since 666 tonnes three years earlier, when disruptions due to jewellers’ strikes and demonetisation eroded demand, P.R. Somasundaram, the council’s managing director in India, said in an interview ahead of a quarterly report.