The demand for gold in India has returned to decline, as the increase in cases of coronavirus diseases reduces the number of guests at Indian weddings, which are the main source of demand for gold in the country.
The data indicate that the number of coronavirus diseases is increasing during the beginning of the wedding season. Against this background, the Government is tightening restrictions on the movement and size of large gatherings.
"People are concerned about the situation around the coronavirus, which leads to a decrease in demand for gold," said the chairman of the All India Gem and Jewellery Domestic Council, and added that demand is likely to continue to decline in the first quarter of 2022.
The expected drop in demand will follow the recovery of sales in the second half of 2021, which could lead to an increase in imports to a six-year high after the easing of restrictions related to the pandemic.
According to the World Gold Council, gold sales in the 1st quarter of 2021 increased by 37% per annum, to 140 tons. Experts believe that annual demand will increase against the background of delayed demand, but consumption will normalize to an average of 750 tons in 2022.