The price of gold in India is almost at an all-time high, even as demand is thin. According to Metal Focus, a leading precious metals consultancy, jewellery demand is likely to fall 36 per cent to just 348 tonne in 2020, the lowest in a decade. It said the rural economy, which is better placed, and low-key weddings are likely to drive jewellery buying.
Also, digital gold has witnessed increased interest, but in quantity terms, this mode of investing in physical gold is only a fraction of the overall investment in this safe haven product.
A decline in overall consumer savings is likely to undermine gold investments. Instit-utional investors may continue to buy SGBs.