WGC sees no decline in Indian demand

World Gold Council (WGC) has ruled out any decline in Indian gold demand because of rising prices.

The council has forecast that gold sales would increase 10-15% this year from 800 tonne consumed last year arguing that the rising crude oil and base metal prices have left limited alternatives for investors to park their funds.

The on-going price rise may create an inflationary situation all around resulting in gold remaining the only bet as a hedge against inflation, the council said.

A release by the council said gold has long been considered a traditional classical gift in India, and has formed a special connection with Indian festivals. "Diwali acts as the important ingredient that allows Indians to indulge in gold - whether as gift, investment or a deserved personal treat. More Indians are subscribing to the belief of gold being the ideal valuable gift," the release said.