We feel that the demand may go up to 700 tonne in 1998, a senior MMTC official, who asked not to be identified, told Reuters. This estimate is on the conservative side. India consumed 500 tonne of gold in 1997, he said.
Gold prices in the domestic market are expected to remain between Rs 4,000-4,200 per 10 grammes in 1998, he added.
There has been a sudden spurt in gold demand in the country in the last two months, the official said. This trend will continue. Gold consumption will rise in all sectors urban, semi-urban and rural.
