Jewellery demand expected to fall by 6-8% over high gold prices: Report

Being a price-sensitive market, inflation in gold prices affect consumer sentiments and results in postponement of purchases by customers

Jewellery demand is expected to decline by 6-8 per cent in terms of volume following high gold prices and weak consumer demand in 2019-20, according to a report.

"Overall, we expect the jewellery demand to be subdued in FY20 with expected volume de-growth of 6-8 per cent on the back of elevated gold prices and weak consumer demand, rating agency ICRA said in a report.

Gold jewellery demand in India has been subdued in the last five years ending FY19, affected by series of regulatory measures aimed at purging black money and formalising the industry and fall in investment demand given its