Gold shines as price hits all-time high, but demand loses lustre

Even as physical demand is absent, investments in paper gold are pushing the price of the yellow metal to record highs

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.

Even as physical demand is absent, investments in paper gold — gold ETFs and sovereign gold bonds (SGBs) — are pushing the price of the yellow metal to record highs.

Also, digital gold has witnessed increased