India’s Gold Demand Faces Slowing Savings Rate, Farm Wages Risk
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Gold demand in India is likely to face challenges from a declining household savings rate and lower agricultural wages, according to the World Gold Council.
Rising income is one of the biggest drivers of gold demand, suggesting that as India’s economy grows, sales of the precious metal should increase, the WGC said in a report. However, “households are saving proportionately less than they used to, which may reduce the amount of capital they allocate to gold,” it said.