The fall in demand could also narrow India’s trade deficit and support the faltering rupee. Sales are zero during the lockdown,” N Anantha Padmanaban, chairman of the All India Gem and Jewellery Domestic Council told Reuters. He said India’s gold consumption in 2020 could fall to 350 tonnes to 400 tonnes, the lowest since 1991, and down from 690.4 tonnes in 2019. Religious festivals, such as Gudi Padwa and Akshaya Tritiya, also help to boost gold demand but this year people were confined to their homes during the festivals, Prithviraj Kothari, managing director of Mumbai-based bullion dealer RiddiSiddhi Bullions, said. The jewellery industry is also worried about a slowing economy, job and pay cuts that could hit demand even after the lockdown is lifted.

Source: The Express Tribune April 16, 2020 12:45 UTC