MUMBAI(Commodity Online): World's largest consumer of gold, India, has witnessed a decline in demand of 29% in 2012, when compared to 2011, giving way for China to emerge as the largest gold buyer in the running quarter, says the monthly research report of SMC Global.
India's gold jewellery demand slumped by 19% to 152.0 t in Q1 2012 compared to Q1 2011 and gold investment demand was down by 46%, driven by volatility in prices, taxation and import duty hike and economic turmoil.
Global gold demand in Q1 2012 was down by 5% at 1,097.6 tonnes on y-o-y basis, according to World Gold Council's Gold Demand Trends report.
According to the report, central banks will continue to keep interest in gold portfolio diversification because of its low two increases in the import duty for gold and correlation with other assets and its superior performance in crisis events.
India gold imports may decline to 20-25t in June from 55-60t a year ago as the devaluating currency cuts into jewellery and investment demand.
According to the SMC outlook for the month of July,?In the month of July the bullion counter will remain on volatile path as the movements of greenback along with global risk sentiment will be the key factors which will influence its direction. On domestic bourses the movement of local currency is the prime element to watch out for. Furthermore the development in middle east especially Iran will give direction to its price.?
In July 2012 Gold prices may trade in range of $1530-1660 in COMEX and 28500-30600 in MCX.
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