Mumbai: India’s gold jewellery demand is likely to increase 17 per cent in 2017 on a bounce-back after demonetisation.
India Ratings, in its latest study, forecasts India’s gold jewellery demand at 600 tonnes in 2017, which is equivalent to the last five years’ average. The World Gold Council (WGC) estimated India’s gold jewellery demand at 514 tonnes in 2016.
“Jewellery demand remains robust, given India’s demographics and wedding-related purchases. Demand is likely to rebound to above a five-year average of 600 tonnes in 2017,” said Harsha Sodhani, an analyst with India Ratings.
India’s gold demand plunged 21 per cent in 2016 to 675.5 tonnes from 857.2 tonnes in the previous year. Investment demand contributed 25 per cent, or 161.5 tonnes, of the total.
“The US economy has shown resilience in recent months, causing the dollar to strengthen, but gold has not lost its shine completely. Geopolitical tension in the Ukraine, Syria, and the South China Sea has kep alive the safe-haven appeal of gold,” said Prithviraj Kothari, managing director, RiddiSiddhi Bullions.
