Gold demand in India to hit four-year low in 2024 on sharp rally in prices, says report

The fall in demand is attributed to record high prices, which are seen denting purchases during the peak festival season in the December quarter.

Demand for the precious metal usually spikes towards the end of the year in India, as buying gold for weddings and major festivals such as Diwali and Dussehra is considered auspicious.

But this year, many buyers advanced purchases to August after local prices fell sharply following New Delhi's reduction to the import duty by 9 percentage points in July, Jain said.

On Tuesday, when people all over India and even beyond were celebrating Dhanteras, the gold price rose by ₹300 to ₹81,400 per 10 grams, near its record high level, in the national capital. 

On Monday, the precious metals of 99.9% and 99.5% purity had closed at ₹81,100 and ₹80,700 per 10 grams.

Some impact of the sharp surge in gold prices was seen in the stock prices of gems and jewellery companies yesterday. 

For instance, shares of Senco Gold crashed as much as 19% during the trade on Dhanteras day.