Gold demand plummeted to a seven-year low in the July-September quarter at 146 tonnes, down by 24% in comparison to the same period in 2016. Data from the World Gold Council shows that this latest fall in demand comes after three consecutive quarters of growth. Also, the 146-tonne figure is the lowest for the period in this decade.
Jewellers attribute the fall to the introduction of the Prevention of Money Laundering Act that impacted consumer sentiment.
The drop in demand comes in the wake of Korean imports being banned as well, say industry sources.
The WGC makes a conservative estimate of the total annual demand, placing them at 650-750 tonnes, leaning towards the lower end.
Gems and Jewellery Federation adds that frequent changes in policy, demonetisation and GST have dampened sentiments.