India's scrap gold supplies at record high on price rally, coronavirus: WGC

Record high local prices, coupled with short-term pressure on household finances, could encourage people to sell gold

Scrap gold supplies in India were likely to hit an all-time high in 2020 as consumers would sell jewellery to reap record high prices and cope with the financial crunch from the coronavirus lockdown, the World Gold Council (WGC) said on Thursday.

Rising scrap supplies, amid a fall in demand could, however, dent the world's second-biggest bullion consumer's imports and cap a rally in global prices, which hit a more than seven-year high earlier this month. Falling bullion imports could help reduce India's trade deficit and support the ailing rupee.

Record high local prices, coupled with a short-term pressure on