Consumers defer old gold sales on hopes of further rise in prices

Safe-haven buying of the metal has seen prices hitting a seven-year high in the international market and a life-time high in India

After a buoyant June quarter, Indian consumers are now staying away from fresh sale of old or used gold and jewellery to generate cash in July and August, due to forecasts of a further rise in bullion prices.

Data compiled by the World Gold Council (WGC), the global gold miners’ body, estimated a record 37.9 tonnes of gold recovered from scrap jewellery in April-June 2019 quarter, up 18.4 per cent from 32 tonnes reported in the corresponding period last year.

Trading at Rs 31,648 per 10 grams on April 1, 2019, standard gold price spiked to touch Rs 33,500 per