Gold Sales Plunge As Prices Surge

India's gold consumption in the July-September quarter slumped by as much as 32 per cent from the same period last year to 123.9 tonnes as the economic slowdown and higher prices of the precious metal dampened demand, according to a report released by the World Gold Council (WGC) on Tuesday.

The country, which is the second largest consumer of the precious metal next only to China, also recorded a 66 per cent fall in gold imports to 80.5 tonnes during July-Sept this year compared to the same period last year. India had imported 236.8 tonnes of gold in the same quarter in 2018. The decline in imports was sharper as jewellers met their demand with old imported stock and recycling, WGC India managing director Somasundaram PR said.

In September, local gold futures hit an all-time high of Rs 39,885 ($563.85) per 10 grams. They have risen about 22% so far in 2019, tracking a rally in global prices as well as reflecting a depreciation in the rupee.