Pursuits
Gold Demand in India May Only Return to Normal Levels in 2018
- World Gold Council sees average use at 850-950 tons by 2020
- More uncertainty seen in 2017 by proposed goods tax: WGC
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Gold consumption in India won’t return to normal levels until 2018, delaying a forecast recovery from a seven-year low, as a liquidity squeeze tightens spending this year in the world’s largest consumer after China, according to the World Gold Council.
This year “has a lot of uncertainties,” P.R. Somasundaram, managing director for the council in India, said by phone from Mumbai. The government’s move to ban high denomination currency is keeping demand muted, while further uncertainty is expected from a proposed uniform goods and services tax and a plan to standardize the quality of jewelry, he said.