Gold demand rose 14% in Apr-Jun, outlook for next to quarters weak: GFMS

Price might fall sharply if the US Fed does not reduce rate and policy remains unchanged for too long

India’s gold demand in the April-June 2019 quarter saw an increase of 14 per cent on a year-on-year basis, but it might remain muted in the next two quarters. Among the reasons for a weak outlook are high domestic prices. The rates, already high in international markets, will increase further in India on account of the 2.5 per cent import duty increase announced in Union Budget 2019 earlier this month. 

According to GFMS Gold Survey: H1 2019 Review and Outlook, published by the Refinitive today, Jewellery demand increased by 16 per cent in the June quarter to 168 tonnes, while