Gold import seen shrinking 15% in 2018, despite festive jewellery push

Most of the consumer demand is for light-weight variety, and investment demand for gold is sluggish due to rising interest rates, tighter credit norms, among other factors

Fall in rupee exchange rate has helped arrest impact of a sharp correction in the international prices of gold, which are down nine per cent in the current calendar year, even as the price of domestic standard gold has remained more or less stagnant.

However, prices in India are down 6.8 per cent on average from their peaks. As a result, the country's price-sensitive customers are back in the market and demand is now expected to remain steady after the first half of subdued offtake. Indications are that jewellers have started restocking gold ahead of the festival season which is