Statsguru: India's gold demand declines as prices shoot up amid Covid-19

As the global economy suffered due to the Covid-19 pandemic, the impact started showing up in gold, a commodity that can be considered its bellwether. Gold prices and demand have to a great extent been markers of the path where the economy is headed.

While gold prices started firming up in 2019 itself, the yellow metal became the costliest ever in history and touched $2,067/oz on August 6, 2020 (chart 1). Prices have softened to less than $2,000/oz now. Prices in India have also reached record levels (chart 2).

The pandemic also affected gold demand. India’s consumer demand for gold