Dark Monsoon Clouds Overshadow Gold Demand

Since time immemorial, gold has been an asset every household prefers to invest in. This yellow metal is treated as a priced asset across India that is not just considered a status symbol but has great religious significance. Indian weddings and festivals are incomplete without gold. It is perceived as a source of traditional long-term returns. However, with global climate change leading to unseasonal rains, floods and droughts, agriculture output is getting affected badly and this in turn has its sharp impact on gold buying, especially in rural India, which is the main agrarian belt of the nation. According to World Gold Council (WGC), gold demand in India declined by 32 per cent to 123.9 tonnes in the third quarter (Q3)between July-September, 2019. Among various other reasons, monsoon played an important role in bringing down the demand. The WGC’s 2019 gold demand estimate for...