As Indian gold prices jumped 25% in 2019, hitting a record high, consumption fell 9% from the previous year to 690.4 tonnes, the lowest since 2016, the WGC said
Lower buying by the world's second biggest consumer of the precious metal could weigh on global prices that jumped 18% in 2019
The Chinese festival is also expected to improve demand in Singapore, with many retailers offering promotions for bullion, Silver Bullion sales manager Vincent Tie said.
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With relaxation, one can also deposit with refiners and purity testing centres
WGC cuts full-year forecast for 2019 to 700 tonnes from 750-800 tonnes estimated projected earlier
The illegal trade could rise further in coming months as India, the world's second biggest gold consumer, raised an import tax on gold by 2.5 percentage points to 12.5% in July's federal budget
Two-thirds of India's gold demand comes from rural areas, where jewellery is a traditional store of wealth
Apart from demand for jewellery fabrication, physical investment is expected to improve 4 per cent