India's gold demand may slow down due to declining household savings

Gold demand in India is likely to face challenges from a declining household savings rate and lower agricultural wages, according to the World Gold Council.

Rising income is one of the biggest drivers of gold demand, suggesting that as India’s economy grows, sales of the precious metal should increase, the WGC said in a report. However, “households are saving proportionately less than they used to, which may reduce the amount of capital they allocate to gold,” it said.
 

Other key headwinds will emerge as more people get access to banks and financial products, which provides investors with other sources for