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Gold’s Allure to Dim in India on Lower Rural Income

  • Erratic monsoons may hurt farmers’ incomes, impacting demand
  • Consumption may be flat compared with last year: Metals Focus
Updated on

Gold sales in India may suffer this year as inflationary pressures and an erratic monsoon could hurt farmers’ incomes, reducing their ability to buy the precious metal.

The livelihood of millions of farmers in the country depends on the annual monsoon and uneven rains this year could hurt incomes in the farm sector, the biggest buyer of gold in India. An increase in the import tax in July also reduced appetite for the precious metal in the second-biggest consumer.