India’s gold demand in the first half of 2022 jumped 42 percent from a year ago but consumption in the second half could be lower than last year as higher inflation erodes disposable income, the World Gold Council (WGC) said on Thursday.
Lower purchases by the world’s second-biggest gold consumer could weigh on prices, which are trading near their lowest level in more than a year.
But falling demand for gold imports could help narrow India’s trade deficit and support an ailing rupee.
“Inflation is making it difficult for people, especially in rural areas, to save more and allocate to gold,” Somasundaram PR, regional chief executive officer of WGC’s Indian operations, told Reuters….