Gold's allure to dim in India due to lower rural income, says report

Gold consumption surged to 800 tons last year as the easing of virus-related restrictions unleashed demand. The jump in demand and rising imports forced the government to raise the import tax on gold

Gold sales in India may suffer this year as inflationary pressures and an erratic monsoon could hurt farmers’ incomes, reducing their ability to buy the precious metal.
 

The livelihood of millions of farmers in the country depends on the annual monsoon and uneven rains this year could hurt incomes in the farm sector, the biggest buyer of gold in India. An increase in the import tax in July also reduced appetite for the precious metal in the second-biggest consumer.

“We were very bullish on demand this year at the beginning but we have reduced our demand estimates,” said Chirag Sheth, principal