8 Mar 2017
Indian gold demand will recover from 2016 lows
Last year Indian demand fell to it is lowest level since 2009, rocked by a barrage of policy initiatives and a soaring gold price. But the outlook is better – we expect Indian demand to be between 650-750t in 2017.
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The most dramatic was the radical decision to demonetise over Rs15 trillion, equivalent to US$220bn. Other policies – such as the re-introduction of excise duty – also affected the gold market. And the forthcoming Goods & Service Tax (GST) will change the shape of the industry. It’s clear that India’s gold market faces short-term headwinds. But looking ahead, these policies promise to deliver a stronger and more transparent economy. This will support gold demand, which we expect to be between 650-750t in 2017.